Press Alt + F2 and type:
gksu gedit /etc/modprobe.d/alsa-base.conf
And comment (add a "#" in front of it) the last line called "options snd-hda-intel power_save=10". Basically, this is how the line should look after editing it:
#options snd-hda-intel power_save=10
Then save the file.
For other Karmic Koala known bugs and work-arounds, see "My upgrade to Ubuntu Karmic Koala beta"