I just got a new reel and if you spin the handle fast it makes a noise.  No noise when casting or fishing, but spun fast you can hear it.

I took it apart and it seems to be coming from contact between the 2 metal gears as the small spool gear has some play?

heres a video of the noise I removed the spool as it amplified the noise..Is this normal?? I have an Abu inshore and it doesn't do this at all.

Is it brand new or new to you?

Remove the line guide cap and the pawl. Make sure it's seated correctly and  you have lube on the levelwind.

make sure the pinion gear is seated down and that the pinion housing bracket is on the correct way. When the side plate is off, the pinion will have a little play.

the pinion bearing under the clutch could be bad as well. Its a really cheap fix to replace. You can pull it out to clean and flush anyway if you haven't.

to me it sounds like the pinion isnt seated correctly.

hopefully DVT will come along. Noises can be difficult to diagnose without having hands on.

 

Brand new less than a week, how much play should be in the pinion gear? And how is it seat? I seems to just ride in the white cup part.  If I take out the main gear it swings around freely

It will move around quite freely w/o the main gear in there. It shouldn't move too much with the main gear seated correctly and the housing in place but it could have a hair of up and down play due to the fact the side plate is off. The pinion housing should be obviously seated on both posts. The housing itself has a 45 degree angle cut on each side. Make sure that seats flush or very close to flush. Also make sure that the AR ratchet gear is seated snug on the drive shaft and not moving freely above it. (it's the thin metal disk /w square teeth below the main gear). Without having a hand on the reel it really sounds like something inside the handle side plate isn't seated correctly causing the pinion to ride higher than it should and making that awful noise . Make sure your pawl is seated in the level-wind gear correctly as well. 

Here's another video of the gutsand picture

 

http://imgur.com/NXx8QCp

IMHO, you're worrying about nothing.  If anything put a small amount of grease on the gears and press on.

Are your gears dry and need grease....? Looks like the housing is seated corrected and nothing looks out of place. 

I've greased them today, and molay that's what I'm trying to figure out? I've only used abu's before and they were silent. This is my first Daiwa and wasn't sure if this was normal

with the sideplate off that sound isn't too abnormal because tolerances aren't fastened down w/o the side plate. With the side plate on though, it just sounds like something isn't seated correctly but then again your phone could be amplifying the sound to make it more than it is. HArd to say really. 

There's no problem there. When the reel is together the spool shaft helps keep the pinion in place. Spinning the handle fast isn't part of fishing so it doesn't tell you much as a test, especially with the spool pulled. Fish and enjoy your reel. If symptoms arise or performance suffers during normal fishing, give me a shout and I'll help you work it out. 

Will do thanks for the help