Shoot, I also forgot to add in that Sound preference window, under the
Output Tab:

Select / ensure that ""VT1720/24 [Envy24PT/HT] PCI Multi-Channel Audio
Controller Digital Stereo (IEC958)" is selected.

This may matter if you have more than one sound card (integrated +
discrete). This ensures that the system will use that device for default
audio.

Good luck!

-- 
Envy24 soundcard doesnt work under Ubuntu 9.10 64bit
https://bugs.launchpad.net/bugs/463828
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