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Maybe fire, explosion and smoke effects require Agiea physics card (since Unreal 3 engine uses Agiea and those effects are now so realistic they will cause severe fps drop when running in software mode)? Or maybe the game detects your card as the member of GeForce 6 family and turns off those eyecandy things... GeForce 7 series have many optimizations, e.g. Oblivion runs fine (with the grass turned on) on 7300GT but "chops" on 6600GT, no matter these cards are pretty much the same (speaking of speed)...
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