So when you are moving your cursor around the xbmc screen there is no sound

To fix use the following

press alt + ctrl and F2

login

Create a file in home directory:

nano .asoundrc

Add:

pcm.!default {
type plug
slave {
pcm “hdmi”
}
}

press ctrl X to save the file

ren reboot the machine with sudo reboot

you should now have navigation sounds just the way it was intended