Ubuntu Oneiric 11.10: HDMI audio out on XPS M1330 with Intel Integrated Graphics Card

1) Open Sound Settings, click on Hardware Tab, next to Profile select Digital Stereo (HDMI) Output. The Output tab should now show Connector: HDMI.
2) Open terminal, sudo alsamixer. Go to the right with the arrow keys until you find S/PDIF 1 (1, not 0 or anything else). Unmute it by pressing M. Test audio.