Originally Posted by
trekdude
Anyone who has a IGH experienced such a noise from the IGH? What can be wrong with it since I can see the gears inside from my naked eye. Please help!

Oftentimes frame flex or even a little tug at the shifter cable can cause the gearing calibration to get off. Then, you'll hear grinding in some gears. So, whenever the Shimano IGH gears get a little crunchy, always check that your gearing calibration is okay. If you don't know what this means, then check out:
http://www.sheldonbrown.com/nexus-mech.html
Hopefully, this is the problem and not something major. Good luck!