This completely works under Windows 7. No ATI drivers are needed, native Windows 7 drivers make it work.
Both nVidia displays are on from both DVI outs and HDMi is connected from receiver to a second video card (ATI). It is outputting True HD Audio. So the workaround is to install a cheap second video card with HDMI out!
I am having problems in Windows XP, however, I tried installing just the HDMI AUdio driver. I think you need to enable the third display somehow, which would actually be the receiver connected with HDMI. Since no ATI video drivers were installed, maybe that's what needs to be done....