As a note, one still needs to:

1. Enable the IEC958 switch in the volume control (double click the volume 
panel icon to get there - and select Settings and check the IEC958 option if 
you don't have the switch visible from the start)
2. Select "HDA Intel STAC92xx Digital" as the option for Multimedia in the 
sound settings option

... in order to actually get sound from movies etc to go through the
cable.

Worked wonders for me on Intrepid.

Source: http://ubuntuforums.org/showthread.php?t=689390&page=2

-- 
No audio over HDMI on XPS M1330 and XPS M1530
https://bugs.launchpad.net/bugs/174696
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