I found a workaround of some sort here 
https://bugs.launchpad.net/ubuntu/+source/linux-source-2.6.20/+bug/94373

 sudo modprobe snd-hda-intel model=3stack

I don't know how to fix it permanently though.

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no snd-hda-intel on 7.10 upgrade
https://bugs.launchpad.net/bugs/158086
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