If Physx() returns a 1, then PPU is detected and drivers are installed.
If it returns a 0, then PPU is not detected, or drivers (PhysX Runtime) is not installed. DarkPhysics is also set up so that it will automatically open a web browser at the point where you call the PhysX() command and go to the NVidia website if the player doesn't have the PhysX runtime software installed. (which doesn't require the PPU)
So when you distribute your game, you're going to have to make sure that your players install the PhysX runtime software before they run the game. That will allow players with ATI (and other) cards to still play your game with PhysX support.
If I recall, Fluids REQUIRE the PPU to be present. I've not messed with DarkPhysics for a while now, so I'm not sure if that's been addressed or not.