Bingo! With the help and advice of Toripony, I am finally able to run Railworks again. I cannot run TS2012, but I do have RW2 back. My issue was an error message that said "Cannot initialise PhysX." From that point, Railworks would not run at all. Here's the solution I found.
1. Under Steam Railworks properties, set Automatic Updates to "Do not automatically update this game."
2. Uninstall the version of Physx that came with the TS2012 upgrade, including all references in the Registry.
3. Install the version of Physx that came with RW2 (PhysX_6.10.25_SystemSoftware.exe).
4. Rename the upgraded version of Railworks to something else (railworks_2012).
5. Copy your backed up RW2 railworks directory into C:\Program Files\Steam\steamapps\common.
6. Reset your Railworks display graphics to whatever you had previously in RW2.
7. Enjoy!
I tried using the older version of Steam with the install, but that wouldn't work. My solution is copied into the current version of Steam. Now, I need to find a way under RW2 to turn the dynamic shadows off. They are slowing my old computer down to a crawl.
Thanks to all of you who offered possible solutions. I have tried a ton of different ideas this week. By the way, I sent three emails to RSC support and never received a response. Nvidia responded within an hour, stating that my computer would not run the latest version of PhysX at all.
Glad to be back up and running.
Harry