So I have it working. The box is a Nettop with an Atom D525 proc, and the NVidia ION GT218, with HDMI out.
Issues:
ISSUE 1
It doesn't work unitl I direct audio over card 0,7. Until then, no audio.
example:
aplay -D plughw:0,9 /usr/share/sounds/alsa/Front_Right.wav
doesn't work
aplay -D plughw:0,7 /usr/share/sounds/alsa/Front_Right.wav
works
aplay -D plughw:0,9 /usr/share/sounds/alsa/Front_Right.wav
Now works (and now all audio works.)
ISSUE 2:
when played from the command line:
$ aplay -D plughw:0,7 /usr/share/sounds/alsa/Front_Right.wav
Playing WAVE '/usr/share/sounds/alsa/Front_Right.wav' : Signed 16 bit Little Endian, Rate 48000 Hz, Mono
Sounds good. When running the Speaker test from within Gnome, it has a horrible metallic grating noise over the top of it. In fact all sound played from within the gnome (youtube, pandora, wave files from the file system) has this metallic overlay to it.
If I play the following from the command line:
$ aplay -D plughw:0,7 /usr/share/sounds/gnome/default/alerts/glass.ogg
Playing raw data '/usr/share/sounds/gnome/default/alerts/glass.ogg' : Unsigned 8 bit, Rate 8000 Hz, Mono
it's pure static
If I play it through Gnome, it's the proper sound, with the metallic grating.
Relevant info:
$lspci
00:00.0 Host bridge: Intel Corporation N10 Family DMI Bridge (rev 02)
00:1c.0 PCI bridge: Intel Corporation N10/ICH 7 Family PCI Express Port 1 (rev 02)
00:1c.1 PCI bridge: Intel Corporation N10/ICH 7 Family PCI Express Port 2 (rev 02)
00:1c.2 PCI bridge: Intel Corporation N10/ICH 7 Family PCI Express Port 3 (rev 02)
00:1d.0 USB Controller: Intel Corporation N10/ICH 7 Family USB UHCI Controller #1 (rev 02)
00:1d.1 USB Controller: Intel Corporation N10/ICH 7 Family USB UHCI Controller #2 (rev 02)
00:1d.2 USB Controller: Intel Corporation N10/ICH 7 Family USB UHCI Controller #3 (rev 02)
00:1d.3 USB Controller: Intel Corporation N10/ICH 7 Family USB UHCI Controller #4 (rev 02)
00:1d.7 USB Controller: Intel Corporation N10/ICH 7 Family USB2 EHCI Controller (rev 02)
00:1e.0 PCI bridge: Intel Corporation 82801 Mobile PCI Bridge (rev e2)
00:1f.0 ISA bridge: Intel Corporation NM10 Family LPC Controller (rev 02)
00:1f.2 SATA controller: Intel Corporation N10/ICH7 Family SATA AHCI Controller (rev 02)
00:1f.3 SMBus: Intel Corporation N10/ICH 7 Family SMBus Controller (rev 02)
01:00.0 VGA compatible controller: nVidia Corporation GT218 [ION] (rev a2)
01:00.1 Audio device: nVidia Corporation High Definition Audio Controller (rev a1)
02:00.0 Ethernet controller: Realtek Semiconductor Co., Ltd. RTL8111/8168B PCI Express Gigabit Ethernet controller (rev 03)
03:00.0 Network controller: Atheros Communications Inc. AR9285 Wireless Network Adapter (PCI-Express) (rev 01)
$ aplay -l ; aplay -L
**** List of PLAYBACK Hardware Devices ****
card 0: NVidia [HDA NVidia], device 3: NVIDIA HDMI [NVIDIA HDMI]
Subdevices: 0/1
Subdevice #0: subdevice #0
card 0: NVidia [HDA NVidia], device 7: NVIDIA HDMI [NVIDIA HDMI]
Subdevices: 1/1
Subdevice #0: subdevice #0
card 0: NVidia [HDA NVidia], device 8: NVIDIA HDMI [NVIDIA HDMI]
Subdevices: 1/1
Subdevice #0: subdevice #0
card 0: NVidia [HDA NVidia], device 9: NVIDIA HDMI [NVIDIA HDMI]
Subdevices: 1/1
Subdevice #0: subdevice #0
card 1: default [USB PnP Sound Device ], device 0: USB Audio [USB Audio]
Subdevices: 1/1
Subdevice #0: subdevice #0
default
Default
hdmi

ARD=NVidia
HDA NVidia, NVIDIA HDMI
HDMI Audio Output
front

ARD=default,DEV=0
USB PnP Sound Device , USB Audio
Front speakers
surround40

ARD=default,DEV=0
USB PnP Sound Device , USB Audio
4.0 Surround output to Front and Rear speakers
surround41

ARD=default,DEV=0
USB PnP Sound Device , USB Audio
4.1 Surround output to Front, Rear and Subwoofer speakers
surround50

ARD=default,DEV=0
USB PnP Sound Device , USB Audio
5.0 Surround output to Front, Center and Rear speakers
surround51

ARD=default,DEV=0
USB PnP Sound Device , USB Audio
5.1 Surround output to Front, Center, Rear and Subwoofer speakers
surround71

ARD=default,DEV=0
USB PnP Sound Device , USB Audio
7.1 Surround output to Front, Center, Side, Rear and Woofer speakers
iec958

ARD=default,DEV=0
USB PnP Sound Device , USB Audio
IEC958 (S/PDIF) Digital Audio Output
$ uname -r
2.6.35.9-64.fc14.i686
pulseaudio-0.9.21-7.fc14.i686
alsa-lib-1.0.23-2.fc14.i686
kmod-nvidia-260.19.21-1.fc14.1.i686
kmod-nvidia-2.6.35.9-64.fc14.i686-260.19.21-1.fc14.1.i686
Taking a shot out there that anyone else may have had this issue.