When I looked at using PhysX, one had to install a runtime a bit like installing .NET. However I note Unity3D employs PhysX and Unity3D plugin installation is fairly simple and doesn't appear to add 3rd-party components. How is this possible?
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As a partner, they presumably would have access to special builds or even source code for PhysX, allowing Unity to link in or bundle with PhysX directly. Just because a core technology is distributed one way (say the end-user run-time or nVidia drivers), doesn't mean that that's the only way.
Also keep in mind, PhysX doesn't require hardware acceleration and can act as a software physics engine by itself.

DuckMaestro
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As of phyx 3.x it's not necessary to install drivers,
http://physxinfo.com/wiki/PhysX_SDK_3.x
I think they might have restructured how they look for dlls to not require that they get dropped into the windows directory.

Gedalia
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