I have read several postings on other boards of people having the same problem as me.
Here is a summary of what people have found:
A new 7025+ fresh out of the box with firmware 20090213 (I think). The audio outputs were working. When the latest firmware was flashed, however, there was no sound on the cinch outputs. Several different images were tried, but still no sound.
The sound on the SCART is fine, so there is a workaround.
Is this possibly a driver problem?
m