So Ioptron checked out the mount and they have indicated that the noise is normal.
Anyway, they had three people listen to the mount and compared it to a new one and an old one and they say that all sounded the same. Well alright then - they must all sound like that. He apparently did not turn up the volume when he listened to my video of the sound on youtube.
They measured by PE as being at 13 arc seconds with the gear alone being 6". They said that it was obviously gear meshing or bearing that added the majority. I have asked for clarification as to what that means. they added that it could have been caused by temperature cycling or ship bumping whatever ship bumping means. I presume that means damage in shipping but I have asked for clarification.
He added that they were able to make adjustments to get the full PE down to 8 without difficulty. I have asked whether this was just them getting the gear meshing right or if they made other adjustments. I am sure they all went home so I hope to get that cleared up tomorrow.
He indicated that the technician would take one more look at it tomorrow and then ship it back to me. Of course, I will get it set up and run through PEMPRO as soon as I get it!
All in all, they were speedy in their work, so I can't complain too much. If it will run at 8" peak to peak I will be a happy camper.