How much does this system cost? on the link it says the item is currently unavailable... as for the hardware this should play any game that is out, the only thing is at what quality settings... if you have a 19-24inch wide screen LCD you will probably be looking at playing this game on the native resolution of this monitor with maybe 2x FSAA and 2xANISF with medium/average graphic setting for the best frame rate... there will be a few setting you could turn up to high such as the bread and butter setting like Texture detail or world detail some of the main settings... the other settings such as shadows and post processing and other "treats" you might benefit from turning them down a notch (but still using them if possible)....... you will just have to play with the settings per game to find the best visually pleasing graphics at the best playable frame rate....
On this computer neither the CPU or GPU should bottle neck each other they are relatively from the same generation of computer parts so they will work well together... this problem would be more suited for a Intel Core i7 CPU and a GeForce 8 or 9 series GPU... This Dual core CPU should be adequate for your gaming needs... I had a Core 2 Duo E6750 stock clock and a 8800 GTS 640mb and i could play any game out on a 22in LCD and it looked/ran great... i recently upgraded to a GTX 260 and 4GB of RAM however.
If you are playing PC games on somewhat of a budget the 2GB will be enough but i cant deny the advantages of having 4GB, you will probably want to reinstall windows and use a 64bit Windows platform to take full advantage of it though.
As for the PhysX... the GeForce 9 series PROBABLY come with tis setting enabled by default you shouldn't notice a big performance hit but yes enabling this "eye candy" will more then likely take a few frames of your total frame rate, but not enough to turn it off...
But yes this computer should play most any game you are looking to play for a little while to come... only question I have is what is the price they are asking for this machine...???
Hope my opinions/ideas help, and i don't get bashed to much on them 
~Sean