Nvnews has an interview with Tim Sweeney about UT2007. He addresses the PPU in it.
http://www.nvnews.net/vbulletin/showthread.php?t=70056
http://www.nvnews.net/vbulletin/showthread.php?t=70056
What happened to the PPU-only deathmatch levels? Were those simply a rumor?what we are doing in UT2007 is using the physics hardware only for accelerating special effects objects, things where the server tells the client, Spawn this special effect here! The client responds with an explosion with thousands of particles, and each of those operates as a seperate physics object but it doesn't effect the gameplay... its just purely a visual effect there.