I'm not able to reproduce the Audio issue. I've tested with Nero Burning ROM and Nero Express, and the audio plays back fine from Computers and DVD Players.
Now this could be because I am testing a newer version of Nero 7, than what was leaked out to the forums.
And I'm not going to waste time testing with an older build. But if you could provide exact steps on how you created the audio CD, such as from Audio Files, what formats were the audio files, how were they created, did you use Normalize on all or some of the files, remove PreGaps?
Now I'm starting the testing for the Video issue, where converting a PAL file to NTSC causes audio and video to be out of sync. I'll be using an MPEG-2 PAL file that is 2gig in size for the source. And I will burn it to the Hard Drive first and test, then I'll Encode again and burn to disc and test.