I have a recently imaged RPI2, running 1.0.1.
I have a c-media USB stick for audio since the builtin is awful and my TV’s RCA output is haggard and staticy.
It worked the other day, until i blew a breaker. I had the audio output set, and still do. I can play video, but none of the audio on videos only work. I can play songs, and i hear the sound effects from the UI. Just don’t get it. PC and my other Raspi work fine.