Audio doesn't work in OSX but the start-up chime does I have a MacBook Pro (17-inch, Mid 2010 MacBookPro6,1 ) that the audio stopped working on.

The audio jack has a red light on in it. In Sys Pref, under Sound, in the Output tab, only Optical digital-out port is listed. 

I have reset the PRAM and Reinstalled the OS. Why? Because when the mac is restarted, I can hear the start-up chime. So I know the audio does in fact work. Alternatively, I can plug up some headphones to the jack and it works fine. I have read where you can try to keep plugging a headphone jack into the cable in hopes of hitting the "switch" inside; did it for an hour. No luck.

Anyone have any suggestions before I buy a replacement logic board off eBay and replace it?

I love having a 17-inch MBP and do not want to downgrade to a new 15.
The red light in your audio out jack indicates that it is active. That is why you do not hear anything on the speakers.

Your analog/digital switch in the port is stuck -- the red light is the digital audio signal.

Try to plug the headphone in, this time wiggling it from side to side while it's plugged in. 

Alternatively try cleaning the audio plug:

Try inserting a cocktail stirrer or a toothpick and jiggle it around in the audio output port and the internal speakers should come to life.  

If you have a compressed air can use it. that seems to work best.

There is a switch inside that has to be tripped.