Comment 7 for bug 864735

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Serge Matveenko (lig) wrote : Re: [GT5676, ATI RS690/780 HDMI, Digital Out, HDMI] No sound at all

Just found workaround here: http://phoronix.com/forums/showthread.php?62635-No-HDMI-sound-after-upgrade-to-Kubuntu-11.10-with-my-hd4770

Adding "radeon.audio=1" into kernel boot params solved the problem.