The issue is with the latest version of the PhysX System software. As the ageia cards were not nVidia products, and were EOLed, they are essentially no longer supported by nVidia.
When you install the latest nVidia graphics driver, it also installs the latest system software, this breaks the ageia card support.
You have to jump through some hoops to get the Ageia card working properly.
1.) Clean your system of nVidia drivers and PhysX software using control panel+driver sweeper.
2.) Extract the nVidia driver to a folder using 7zip or WinRAR.
3.) Remove the PhysX System Software installer from the folder you just created.
4.) Install the graphics driver by running the setup.exe in the folder.
5.) Install the 8.09.04 PhysX System Software which you can download here
.(This is the last version that officially supported the Ageia cards).
6.) Now you can run the system like this, and it should work, but some of the newest games that use the lastest PhysX runtimes might not use the PhysX properly. So you can install the 9.09.0408 PhysX System Software that you removed from the folder earlier.