Appers that owners of geforce 8 and above can now use PhysX acceleration. People with the hardware PhysX cards are still ok as well the cards still work from what I can tell Nvidia makes better drivers than the physX team did. I get much better performance out of my PhysX card than I did prior to Nvidia purchasing PhysX.
New drivers version 177.83 install video and Physx at one time allowing you to change from physX card acceleration or video card acceleration in the nvidia control panel.
There were earlier versions of drivers that did this as well but only supported the Geforce 200 series of cards as of 177.83 8, 9, 200 series are all supported.
I went into the control panel and selected my PhysX card as the card to use and also was able to apply the video card to use as an alternative.
This link http://www.wegame.com/watch/NVIDIA_PhysX_Particle_Fluid_Demo/ This video was recorded on a machine running an NVIDIA GeForce 8800 GTS 512 graphics card with Forceware 177.83 drivers and PhysX 08.08.01.
This video was recorded on a machine running an NVIDIA GeForce 8800 GTS 512 graphics card with Forceware 177.83 drivers and PhysX 08.08.01.