Make sure you install the HDMI Audio driver in the driver package. You also need to be using a hdmi to hdmi cable. Once that has been done and if it isn't still working you can check the audio devices and see if it is hidden (show disabled devices) and enable it there.
Thanks for the reply. I found out that the motherboard is a Zotac 880G-ATX. So i went to their website and searched for the drivers. I found what I was looking for, I thought because I found a windows 7-64 bit HDMI audio driver. So I downloaded that and ran the .exe application file from the zip file. That went through an installation sequence and then gave me an error that said "no driver was supported in this driver package". If I look deeper into the zip folder, there is an HDMI folder. So I opened that and it had Vista, Vista64, XP2k and and XP2k64 subfolders. There was no windows 7 folder. Not sure if that's the problem or if there is something else. Just something that I noticed.
I am using a standard HDMI cable running from the HDMI port, not the DVI with DVI-to-HMDI adapter. I also tried to show hidden devices and the only things it showed were a streaming clock proxy and a streaming quality manager proxy.
On the AMD website, under the HD4250 drivers, there was nothing in any of the downloads that said anything about audio. There was the catalyst suite and one other thing that didn't mention audio either. So, I'm really stuck at the moment.
Any help is appreciated