I'm using an 9600GT with an HD 6970 for Mafia 2, Batman AA and Cryostasis with nVidia's 260.99 and Catalyst 11.1a and they work like a champ, playable frames at the highest PhysX settings, nVidia control panel works but the PhysX option wouldn't appear, but they work.
The only issue I found out is that with Mafia 2 when APEX is set to high, it runs fine, but never goes above 40fps no matter what, and the 9600GT usage never goes above 20%. Deleting the Cloth folder from the APEX folder boosted the FPS sky high, the game never dips below 100fps even with MLAA and the 9600GT usage increased up to 45% average and everything like debris, explosions and effects looks the same, except for the clothing which doesn't really make a difference at all except in performance, kinda strange, it seems to be a bug or a bottleneck somewhere, the 9600GT is the minimum for playable settings with maxed PhysX.
PS: Playing Batman AA with the highest PhysX effects and no slowdowns whatsoever, love the scarecrow level, impressive. A pity that Batman AA is the only good showcase for PhysX...