Normally ALC860 only delivers audio output when using AppleAzaliaAudio.kext and few or no modifications are necessary to the .kext .plist files to make it work.
AppleHDA.kext from version 8f1099 did give audio out/in but some users reported it didn't correctly support coreaudio.
There has been work done here on the forum for AppleHDA.kext to support more hardware etc. Maybe this will work for you?
One example is here:
http://forum.insanelymac.com/index.php?showtopic=32859