Downloading the link below will fix the issue, without going back on your Nvidia graphics and having to update it after you're done. Should work and you'll be all set. ~
http://www.nvidia.com/object/physx-9.12.1031-legacy-driver.html

However, if that doesn't work there is another way, however a bit more annoying.

1. First thing is to go to your control panel
2. Go to your uninstall a program feature
3. Scroll down to the PhysX version you have, and unistall that. (Don't worry, it won't screw with your other graphic features and will be installed again soon anyway, just not the latest version.)
4. Then go to your game folder, located in the Steam files C: Drive>Program Files 86x>Steam>Steam Apps>Common>Medal of Honor Airborne>Install>PhysX
5. Launch that .exe file in the PhysX folder and let it install.
6. Once that's done, your game should be fine with your PhysX settings and finally letcha play.

This may not work for you.
It's been awhile since I've looked at this page seriously despite it getting comments every sale or so.
I don't really play this anymore, and I never really thought it would get so many hits or possibly help/intrigue so many people wanting this to work.

However this should go without saying. I'm not a specialist within this game. Or have looked extremely into it as I havent really sat down and gave it a playthrough in over a year.
So this goes without saying yet again just in case.
This may not work for you.

My rig as of now is running a GTX 960 (yes, it will be upgraded soon enough) and still running Windows 7 Professional as I refuse to upgrade as of right now, and an Intel CPU.
I have no idea if it has been confirmed on certain AMD based CPU/GPU systems, nor have I looked into it.
Edit: I have upgraded to an EVGA GTX 1070 FTW DT, and it still works fine with this workaround. And on Windows 10. But then again, I don't have any AMD hardware to compare it to, so this still doesn't cover everyone, and may not work for you.

Some NVIDIA GPU's have been known to cause problems within the PhysX in general, so please be aware.

I made this originally as it was a fix for me and a few others I knew, but sometimes it just didn't work either way.
After deinstalling all PhysX traces and reinstalling the installer within the Medal of Honor folder itself, it failed to open. After installing the Legacy driver it seemed to function just fine despite reinstalling the latest PhysX from the NVIDIA driver page right after testing.

So again. I'm sorry if this doesn't work. You may attempt to comment and ask why or if there's something I can think of to help, but I'm not 100% positive I can get EVERYONE to function properly, as all rigs and possible installs can cause problems with a few.