I know the mac Mini has digital audio out, and the DVI -> HDMI cable is out there. But how do I add the Digital Audio (5.1) and my DIV into one HDMI cable?
Is this what I need?
http://www.gefen.com/kvm/product.jsp?prod_id=3570
Yes that will work, however...
That's probably overkill for simply hooking up a mac mini to a TV. There are only a couple of situations where I could imagine those DVI+audio->HDMI converters would be useful. One would be if you had your TV mounted to the wall, you only had a single HDMI cable going through the wall to it and you didn't want to route another cable. In which case you could use that converter, and an HDMI switcher if you had multiple HDMI sources. Another case would be if your TV had an HDMI port but no dedicated audio inputs, which is highly unlikely (in this situation, take that $299 and put it towards a decent receiver and speakers instead. Then route the optical audio to it. It'll sound better). Some people like to route their HDMI sources through their receiver and use it as a switcher. It could be useful there as well, but personally I like to keep the video stuff outside of my receiver. There are other situations where it would be nice to have, but those come about when building a higher-end home theater.
Any decent HD TV will have at least 2 HDMI ports. One of those should have dedicated RCA-style audio jacks associated with it. Just use a 3.5mm->RCA cable to hook up the audio. Don't worry about not having optical audio going to a TV. You won't be able to tell the difference anyway, considering you'd be using the TV's built-in speakers. I don't use a mac mini, but for my home theater computer I route the optical audio to my receiver and the video to my TV's HDMI port.
The apple stores sell all the video cables and converters you'd need, at a decent price.