Thanks for replying!
Lets see... I only mostly understand what you're saying. For the nvidia control panel the only thing that I see related to this is "display->Set up digital audio" which only gives an option to "change windows sound settings" and that pulls up the "Sound->Playback" menu through windows. Is there a different place to enable/disable audio for the graphics card output?
Next, I'm actually not sure if I'm passing audio from the receiver to the projector since the projector doesn't have speakers (or an audio output). I'm certain that there is no audio processing that happens at the projector in any case. The receiver has HDMI pass through (three inputs and one output) so that the video (and possibly the audio) is passed along to any connected display.
Here's what I'm watching, when it looks like 1 and the receiver is on sound is working, when it looks like 2 sound is not coming through (which is about how I read that).
1 is displayed when the projector is off and the receiver is idle or ready or in standby.
2 is displayed when the projector is on or the receiver is in the process of turning on or to standby (about 5 seconds for the reciever to turn on or to standby and be recognized).
As far as I can tell, the receiver will process the audio when using HDMI pass through. Currently I have an xbox hooked up to one of the HDMI inputs on the receiver and the pass through process works as desired (xbox hdmi to receiver, audio out of receiver speakers, receiver to projector display works).
I would just send digital video to the projector and then hookup audio from the computer to the receiver but I don't have any HDMI on the projector to spare (alas no DVI on the projector). Not that this scenario is even an option, but I don't have a digital audio out from the computer other than the mini HDMI on the graphics card so that would be less than ideal, plus all the extra cables...