Yarp... got the latest nVIDIA and Two Worlds refused to start. After installing the nVIDIA Legacy PhysX Drivers package it went off like a charm again.

It's been this link I believe: http://www.nvidia.com/content/DriverDownload-March2009/confirmation.php?url=/Windows/9.12.1031/PhysX-9.12.1031-SystemSoftware-Legacy.msi&lang=us&type=Other

So shit on that AGEIA PhysX package and get the legacy one by nVIDIA. Considering the game will crash with the latest official PhysX drivers from the nVIDIA GeForce drivers package, it's the best approach. Plus you can install both at once and they won't interfere - both meaning: 1. PhysX from nVIDIA official GeForce drivers package plus 2. PhysX Legacy from the link above (official nVIDIA too).

I had to get this driver : http://www.nvidia.com/object/physx-9.10.0513-driver.html to get Two Worlds 2 to run on a Geforce 650 ti. Every other driver just kept failing to install even the one packaged with Two Worlds 2 itself.

This problem is still not solved. I trued to install two world on my bew computers (with GeForce GTX 770 graphic card).
I got the AGEIA PhysX window with just "text" on it and nothing happening. If I cancel AGEIA PhysX (after a while) the installation ends, it seems OK, but the game crashes at launching.

Install the NVIDIA PhysX Legacy System Software. This has the files Two Worlds needs.

Thanks Arkose, this fixed my problem:)