I too have had the sound issue but seem to have resolved it when I changed my set up. Previously I was running Ubuntu and a nVidea card, sound was 5.1 via my PC. Nightmare trying to fix. Mainly my own incompetence with Linux I suspect
. But the only reason I was going that route was for the GPU (hardware) support that nVidea and Linux offered with 1080p playback it was not unbearable to just max out the amp feeding the speakers.
But now that has changed with the latest releases and I can use Win7 and a Ati card again.
So therefore I have gone back over to the Win7 and using said ATi card with a direct HDMI connection to my TV for both sound and video. Yes I loose the 5.1 but at least I get sound at a level that is on a par with my other set top boxes. Sky for example. And my neighbours seem happier too these days.
Oh I am also updateing my XBMC every week now with the latest nightly.
Thanks for the thread and sorry for the uphill that you got mate (OP) I think that the XBMC project is outstanding mainly because so many people believe in it passionately and care about the project. So forgive those who do forget sometimes that other users have not had the same experience as they might have had.
It is that very passion and belief that sustains the project and makes XBMC the great media centre that it is - but that passion can at times blur how folks respond to perceived criticism, even when there was none intended. Discussion about stuff is good for projects like this.
Cheers.