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The ATI driver pops up a box warning that no audio is being passed to the HDMI display, and to use a seperate audio path.

Oh yeah, there are some important differences between DVI and HDMI plugs, mainly that (if I recall correctly) HDMI doesn't have an audio option, doesn't have an analog-video option, and doesn't have a dual-link option. So I can see how the driver could detect that case. But for situations where none of the above are being used, I was under the impression that the actual digital video data carried on the HDMI cable was the same data and signaling protocol as what's carried on the DVI cable, including all handshaking and device identification.
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Tony Fabris