Windows 7: Onboard HDMI won't allow HD Audio & Video

With Windows XP SP3 I was able to transmit audio which was digital and sometimes multi-channel to my Denon reciever through the HDMI output on my motherboard; I was also able to simultaneoulsy display my computer through that same HDMI connection through my Denon reciever and on to my my Toshibe LCD TV.
But when I installed Windows 7 Ultimate 32bit the HDMI audio was very limited (only 16 bit 2-channel @ 48,000 Hz) and can only select it when the reciever is on (which makes sense, but it's anoying to have to go into sound properties and switch to HDMI if I started the computer before the reciever, I hate technology trying to pretend it knows what I want it to do, it should just be able to do what it's told.) Then, when I turn on the TV this message comes up (which I would see when I was using XP but it didn't change anything):
An HDMI-to-DVI display connection has been detected. In order to hear audio on your HDMI based TV or display, you will need to have a seperate audio conecction from you computer sound outputs to your TV or audio equipment.
However I'm not using the DVI at all I just want to use the HDMI into HDMI because that's the way it's supposed to work because HDMI is supposed to handle both and I shouldn't need to use another cord when I'm already using one that does both.
And so then my sound no longer works but my computer shows on my TV.
Whoopdee doo! why can't I have both. HDMI is supposed to support both and when computer/motherboard/OS manufacturers put these technologies on computers you'd think they should commit to applying them flawlessly the way they were intended to be used.
I understand this may be a driver issue and I've tried many combinations of the newest & the just HDMI Realtek Driver as well as the Gigabyte mother board drivers and the appropriate ATI/Catalyst driver/downloads.
It's confusing and tiresome...

Any advice?... please?

Thanks.

My motherboard (Biostar) just released an updated bios for this very issue, I would start with Gigabyte tech service.