Upgraded MacMini to Lion, sound device driver crashes

I have upgraded my MacMini , Late 2009, 2.53 Ghz Intel Core 2 Duo, 8 GB 1067 Mhz DDR3, NVIDIA GeForce 9400 256 MB

to Mac OS X Lion, Mac OS X 10.7.2 (11C74), and now my sound device will not initialize correctly. It logs the following errors:

10/16/11 9:12:03.000 PM kernel Sound assertion "0 != result" failed in AppleHDADriver at line 1018 goto Exit

10/16/11 9:12:03.000 PM kernel Sound assertion "!me->fKextResourceLoaded" failed in AppleHDADriver at line 993 goto Exit

System Information shows the Intel Audio Hardware as:

Intel High Definition Audio:

Audio ID: 889

Headphone:

Connection: Combination Output

Line Input:

Connection: Combination Input

Speaker:

Connection: Internal

S/PDIF Optical Digital Audio Output:

Connection: Combination Output

S/PDIF Optical Digital Audio Input:

Connection: Combination Input

I have tried fixing permissions on the boot disk, I've reapplied the MacOSXUpdCombo10.7.2 update, and tried to reset the Parameter RAM (not convinced that is working, because I never got a second beep). I see lots of other people having Audio device driver problems with Lion as well.

Thank you,

Chris Shaker