Same problem in 9.10 also, pulseaudio also fails to work.
Audio device: ATI Technologies Inc SBx00 Azalia (Intel HDA)
Subsystem: Giga-byte Technology Device a102
Flags: bus master, slow devsel, latency 32, IRQ 16
Memory at fe024000 (64-bit, non-prefetchable) [size=16K]
Capabilities: [50] Power Management version 2
Kernel driver in use: HDA Intel
Kernel modules: snd-hda-intel
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No 5.1 sound with Realtek ALC888 in jaunty 9.04 RC
https://bugs.launchpad.net/bugs/363752
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