Solved. Figured this out somehow but never came back to post my findings.
Under the NVIDIA Control Panel > Display -> Adjust desktop color settings > 3. Apply the following enhancements: ensure "Content type reported to the display:" is set to "Desktop programs". It's set to default to...
I can also confirm I'm experiencing the same issue - Sony 60EX500, Gigabyte GTX460SE via DVI -> HDMI cable; nvidia 266.58 drivers.
At some point I'm pretty sure I had thought I resolved this by disabling HDMI audio pass through but some how this issue has returned :(
Grrr.
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