I'm a bit confused. You say you have Intel(R) HD Graphics Family
, so you will not be able to install PhysX that's designed for NVIDIA graphic cards/chips. Intel is not compatible with PhysX.
This would be the reason why you are getting a "This Graphics driver could not find compatible graphics hardware
." error everytime you try to install NVIDIA drivers for Intel. It just will not work. You will only be able to install Intel HD Graphics drivers instead. http://downloadcenter.intel.com/Default.aspx?lang=eng