Correct me if I'm wrong but I think PhysX will only work on NVIDIA hardware.
You can check this by using GPUz.
To enable PhysX on ATI cards, you need:
1. a dedicated PhysX NVIDIA card (ie, you add an NVIDIA card to your setup),
2. you need modded
drivers to enable PhysX.
How To: Run PhysX in Windows 7 with ATi Cards - Overclock.net - Overclocking.net
IMO, PhysX makes a difference, however there are too few titles that utilize this feature. Unless you are into benchmarking or getting the that extra x% in performance, I don't see a need.
Also, you can leave it installed on your system.