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any idea how NAT traversal is done?

There's a paper explaining here: http://nutss.gforge.cis.cornell.edu/pub/imc05-tcpnat.pdf

I think that might make a good blog post.

I was asking how they are doing it from browser. But it appears that we need to install a local client :(

You need to install BrowserPlus - but that's an in-browser installation (without a restart) and is fairly seamless.

During the beta you also need to download/install a BP plugin. This is only because Yahoo haven't signed the plugin - and will install automatically when they have.

Yahoo BrowserPlus, works with about 85% of routers

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