Open the audio/sound setting on the HDTV for the HDMI connection, Disable PCM on the HDTV and select compressed to request Bitstream over HDMI via the HDMI handshake, save to that HDMI port setting... this will request DD/DTS from the console... which ever the HDTV supports
HDMI source devices are SLAVED to the Display device... Analogue was the master because there was NO hand shake connection to devices and no communication with the out put device as signals were in a single direction... HDMI is Two way Digital connection...
The HDTV will then Pass through the Audio to the 3.5mm headphone jack... insure that the HDTV has the headphone jack set as Headphone output not Line out... Line out will not increase in volume as its pre fixed level to go to an amp...
( Im using it as a line out to the USB wireless Headset basestation in that photo...)