I believe I read somewhere there were some audio issues with Lion, but I didn't see one similar to mine. I use my Mac Mini as a media server connected to my TV. As of right now I am going HDMI to HDMI. In Plex, the audio works great, but for the rest of the system it is not functioning at all. I tried to go into the settings to make sure it was set to output to HDMI and it all checks out. I also tried connecting using the headphone jack, still nothing. In the MIDI Audio setup I can see that both outputs have the master volume set at 0 and I can not move/make changes to it. Any help would be appreciated.