No signal on Asus monitor from Sandy Bridge mobo HDMI

I have a Core I5 Sandybridge system and an Asus VW246H monitor running Win7HP 64-bit using the 2509 build drivers from download center. Everything works fine using DVI, but when using HDMI to connect the monitor I get an "HDMI no signal" message and a blue screen on the monitor (not the windows BSOD). Google shows me that this seems to happen with Intel graphics and this monitor. Several threads online end with the person replacing the monitor for a Samsung or a Viewsonic.

Here's what I've observed:

1. this HDMI no signal / blue screen seems to happen during the boot-time mode changes. Cold boot to POST / EFI, POST to Windows loader screen, Windows loader to GUI

2. if I turn the monitor off and back on at any point, the display is FINE until the next transition.

3. if I do mode changes in the OS, it seems to remain connected OK

4. if the system goes to S3, I see the blue screen upon resume.

I could go back to DVI + a separate audio cable, but the whole reason I bought this monitor in the first place was to reduce cables by using the HDMI connection to carry audio and video.

What's going on here? Am I missing something obvious? I have a hard time believing that there is an unsolvable incompatibility in the combo of Intel graphics and the Asus monitor?
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  1. The threads that you read online saying that people are returning the Asus monitor for a Samsung or a Viewsonic seems to me to be an indication of something wrong with the Asus monitor if in fact the HDMI connection does work with those other monitors. Unless there is an option in the bios that can be changed , it is clear that there is something wrong with the monitor because it does get the DVI signal.
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