I was trying to edit this post to make it more clear and was unable to do so I will start again.
The issue happened after I update to Lion on my Mac Mini.
Before, the upgrade, I had an HDMI cable plugged into my Mini and a audio plug plugged in. The HDMI supply's video and audio to my HDTV from my mini. So when I am watching TV through my Mini, I have sound from the speakers in the TV. I could also go to setting on my Mini and control the source directly from the screen, if I wanted to use my stereo amplifier for my sound not the TV speakers, I could do this also by going to my on screen setting and adjusting the source of the output.
Now after the "upgrade" in order to have sound come out of my TV speakers via the HDMI I need to unplug the audio cable from the back of the Mini. because the settings are no longer functional from the screen. the setting are over ridden by the audio cable being plugged in the back of the mini as to which source the operating system is picking.
So now I am stuck plugging and unplugging the audio cable to redirect the sound source.
I understand that the designers were trying to get into line with the functionality of the output on the audio plug on the Mini, but why not have it so one can select which way they would like it.
If you could delete my previous post on this tread that would be helpful.