First, I have C:\windows\system32\drivers\RTKVHD64
This was always there.
Second, I followed the steps above and now show High Definition Audio Device instead of Intel. When I update the software I have 2 things to select High Definition Audio Device and Intel Display Audio. If I pick High Definition Audio, I get that. ****Bingo!
Third under System devices which I did not post a screen shot of, I have High Definition Audio Controller. This was always there.
**** I checked Playback devices and when High Definition Audio is selected instead of Intel Display Audio, I see Digital Audio (HDMI) not plugged in.
Now to move the netbook to the tv. Be right back with results.