Basically the gear noise is normal, the question is how much noise is the normal. You need some clearance between each gear. You use a piece of paper to set the clearance.
Here is a site that has the service bulletins for Atlas stuff. Copy them and print them off for future reference. These tend to move around on the web as site owners come and go.
http://scottandersonpipes.com/atlas_press/servicebulletins.htm
ya i figured there should be clearences but on a few gears you can wobble them or pull them in and out like as if the nut holding them on was loose. mainly on the top two small gears that select foreward or reverse feed. hope that made sence.