can someone please explain

Well, its a card that pretty much runs all the phyics in the game. Like when you shoot stuff, and stuff is flying all around screen. All the motions making everything seem like real life stuff. it processes that. Which leaves you with less stress on your CPU making your FPS just that much better :)
I believe thats what it does atleast.
Does the video card handle any of that?
 
^^ yup, that is basically dead on. Some video cards are able to be used as a physics card, but i'm not sure which ones (8800's for sure).

When no physics card is installed, the load is split somehow between the CPU and GPU.
 
But you have to remember the game has to be made to use the physX card. And theres only a few games that support it.
 
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