The noise sounds like the fan is rubbing up against one of the radiator blades... Were there any leaks with the water cooling?
So far, 1/1 units appear to have significant damage upon arrival. Is anyone keeping a tally? Might not hurt to start one.
Also - You might want to consider giving them a call to discuss a warranty claim (i think they only warrant these devices for a couple weeks). At the very least, they can start to resolve the issues and they may end up shipping you a replacement unit. Sounds like they have very serious issues to resolve.