Thanks to some recent patches from TAMURA Kent, the azalia driver is
now working on my Lenovo T60.  I need to set the following mixerctl's:

    mixerctl -w \
	"outputs.lineout.eapd=on" \
	"outputs.linein.dir=output" \
	"outputs.lineout=255,255"

(That second setting is not a typo.)

Unfortunately the system beep is very loud in comparison, but they're not
mind-blowing like before, and aren't currently controlled by the
outputs.beep (volume) nor the outputs.beep.mute settings.  But it can 
be disabled in X using `xset b off' 

Thanks to Kent!

Brian.

-- 
  Brian de Alwis | Software Practices Lab | UBC | http://www.cs.ubc.ca/~bsd/
      "Amusement to an observing mind is study." - Benjamin Disraeli