will this sound system work with HDMI

No HDMI audio with that. Cheapest HTIB that does HDMI Audio is the new sony one (i do not have the model number handy) or the Onkyo SP-908.

Wow, part of the big advantage to HDMI is the new audio Codecs. I bet a lot of people buy a system like this and don't even realize they are missing out on the new Codecs, and missing out on running one cable for picture and sound. Of course they are probably running Monster cables they purchased from Best Buy too.

[quote name='blitz6speed']No HDMI audio with that. Cheapest HTIB that does HDMI Audio is the new sony one (i do not have the model number handy) or the Onkyo SP-908.[/quote]
That Onkyo model looks sweet but it's hella expensive.

http://www.jr.com/yamaha/pe/YAM_RXV463BL/

This one from Yahama can do LPCM only. However, if you have a PS3, that is fine as it outputs everything in PCM.