SUCESS!!! well sorta...
I was able to actually get sound out of PearPC! I used 3 things to do it: Soundflower (virtual device driver), Nicecast (broadcast over the network), and Winamp (to listen to the audio stream)! I got sound!
Now the HUGE problems: nicecast is not free (shareware), huge system hit on Pearpc (freezes mouse anytime sound is invoked) and the lag can be minutes if the sound makes it out at all! Worst of all, the sound is pretty much garbage. BUT IT IS SOUND NONE THE LESS.
I am sure the developers have a much more elegant way and efficient way to get sound out of pearpc, we just have to be patient!