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It's a lot better than simply disabling physx imo.
http://www.nvidia.com/object/physx-9.12.1031-legacy-driver.html
Either way, what ultimately worked was simply installing the above 9.12 legacy driver. Then went into Local Data folder for the game:
Running GTX780s in SLI, now no slowdown in the physx effects scenes. I assume I might run into the "Mass Effect" cache slowdown you've mentioned, but at least the game runs.
works like a charm
I had stuttering as soon as the cops started to shoot the glasses in the very 2nd chapter, and lowering every setting couldn't fix it! the culprit is a broken, old, no-more-compatible, ugly physX software in the default installation
I just moved the PhysXLocal content one dir up.
1. Uninstall Mirror's Edge.
Delete the game's folder manually after performing uninstall.
2. Unistall ALL Nvidia drivers and utilities.
Optional: Once you restarted the times required to fully unistall the Nvidia drivers, use CCleaner to clean any residual files and fix issues.
3. Download and install Nvidia drivers. I used the GeForce Experience software to do it. It also downloads the latest version of PhysX, also, mark the "Make a correct installation" checkbox.
4. Install Mirror's Edge.
NOTE: It's important to not let the game installing it's own version of PhysX as this would cause issues with the latest version installed.
5. Start the game and change your video settings to highest and set max resolution, also keep PhysX on.
All of this just to make this game work, but worth the effort.
At this time you should be able to play the game to the fullest. In my case the game didn't freeze anymore after I play the tutorial and I'm not missing the eye candy perks that PhysX offers. :)