Hello, I've got a daiwa regal 3500xi spinning reel that is about a year old, Recently it started to make noise while being reeled in, it is almost identical to the sound that a reel makes when the drag is being run- a very annoying and constant clicking type noise. Aside from this everything appears fine, retrieval, casting, drag etc... any thoughts on what this could be or how to fix it?

Regards

I'd just send it in to Daiwa, or have a local reel repair take a gander at it.  It could be something really small and it would save time versus being without your reel while you wait for Daiwa to fix it.  

Just because you have a "relatively new" reel doesn't mean it was lubricated properly. I would send it to David Green for a cleaning and lube. If something is wrong with the reel,

he can fix it for you.

http://www.reelmechanic.com/

8-)