for me it worked to completely uninstall the NVIDIA PhysX from the windows programs and restart the game. It will automatically update with the right PhysX engine. It's a version problem between older games like ME2 and more recent ones, for me ME3 killed the engine, so whenever I want to play either of them I have to delete PhysX before and let it reinstall.
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I installed the latest NVIDIA PhysX drivers 9.16.0318 (http://www.nvidia.de/object/physx-9.16.0318-driver-de.html)
AND
the PhysX Legacy driver 9.13.0604 (http://www.nvidia.de/object/physx-9.13.0604-legacy-driver-de.html)
That way I got rid of the error message and both Mass Effect 2 and 3 start normally
Thank you for your information Mussdas! I installed the legacy and driver and instantly was able to boot the game! No "uninstall and reinstall older versions" to play a game! Much appreciated!
It needed BOTH drivers Mussdas linked for me to run ME2
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