Bicycle Mechanics - chain & rear wheel noise on brand new bike (5 speed hub gear)

I bought a brand new Pashley Tube Rider from the bike shop near work last monday (national chain, bought on cycle to work scheme)

This is the bike
http://www.pashley.co.uk/products/tube-rider-double-scoop.html

The bike has Sturmey Archer 5 speed alloy hub gear, with twistgrip control.

On the test ride, the chain was making a continuous clicking noise when it's on the hardest gears (4 & 5) on every turn of pedaling.

The shop staff said it might be that the chain is too tight, so when I bought it they did a 5min job to loose the chain up.

But it went worse, on the following 2 commuting journeys, my brand new bike sounded like a 20year old machine. The noise from the chain was still there, plus a new spontaneous noise from the rear wheel (sounded like from inside of the hub gear, but i might be wrong).

I had to take it back to the shop last weekend, they took a bit longer to look at it but couldn't find anything wrong, this time they tightened it up and "tested it" and said it is all fine. When I cycled home tonight the noise was still obvious and continuous, both from the chain and the rear wheel, and the right foot pedal also start 'clicking' when it gets to the bottom everytime..

I am not really sure what else I can do. I have never had a bike with hub gear, if someone has any idea what could be wrong maybe I can write to Pashley or take the bike to another branch to fix...

any suggestion will be very helpful. thanks

take it back to the shop. ride a bike with a similar set up and see if it akes the same noise.

Verify that the indicator chain is properly adjusted. Put the hub in 2nd gear, and verify that the mark on the chain lines up with the edge of the hub axle. You're going to need to repeat this adjustment every time you change a flat, so might as well get your practice in now.

A pronounced ticking sound in 4th and 5th gear is entirely normal for a Sturmey archer 5 speed. There is a set of pawls on the driver that are outrun by the ring gear in the overdrive gears causing the sound you are hearing.
If your hearing is very acute, you will hear a lighter ticking sound in 3rd gear as the hub shell outruns the drive pawls on the planetary carrier. This sound is also present in 4th and 5th, but the sound in 4th and 5th is much more noticeable.
You will notice the frequency of the ticking increase as you shift from 4th to 5th.

thanks guys.

Dan, is it normal that there is also continuous sound from the hub sounded like small pieces of metal clashing?

thanks guys.

Dan, is it normal that there is also continuous sound from the hub sounded like small pieces of metal clashing?
No, that doesn't sound right.