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Yes it does output audio.

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yes.

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If you're after audio quality, the DAC in whatever you're using to receive the HDMI-signal might not be that good, but the audio signal in HDMI is bit-perfect, so there's no degradation of quality in that link of the chain. But like the others say, yes

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im running a HTPC with onbord HDMI and the visuals ive installed are jerky because there isn't enough memory on the onboard HDMI. I need a card with more memory, 1GIG or more the support said. so I need a new PCI-e card with 1GIG or more memory. wasn't sure that a HDMI PCI-e card outputted audio

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