DV9000 audio output problem

So I have this DV9000 running on windows 7 ultimate 32 bit that has pretty much been of no use for me since the screen has started to distort the colors.

But then I extended the display to my LCD screen and voila it's picture perfect.
I really want to use this as a media center, but it really has been giving me trouble with the audio.

I already know that the HDMI for my model only moves video and not audio through the cable so it was no surprise that I had to try the headphone jacks.
However, when I'm playing a video through my hdmi to LCD there is no audio coming through the headphone jacks or spdif alternative jack.

When I was on XP MC it was fine (at least I think so since it was about 4 years ago when it was my main pc

Here's what I have tried

Conexant AC'97 audio drivers (all versions)
Realtek drivers (a smattering of version)
Playing with all the properties and so fort with said drivers.

Here is what's interesting
To output audio to my LCD TV I use a y audio cable which is recognized only by a certain corresponding HDMI port (this is also how I do it with MBP 17)
This audio cable outputs no sound from either jacks.
However, I put a iphone headphones in the jack and they work with the hdmi pumping out the video.

Ultimately I would like to get this to work through my stereo just like my mac, but it seems that my only viable optino is buy an express card sound card and get the audio going through there. But if anyone has any other suggestion let me know.

Thanks