Originally Posted by tyrion

Are you sure the chain is threaded around the rear derailleur jockey wheels correctly? There's a little tab that the chain must go on the inside of, and I once put it on the outside of that tab, and everything worked and shifted, but it rubbed on the tab and was noisy.

Originally Posted by SkyDog75

Chain routing through the rear derailleur pulleys, like tyrion described, is my first suspicion. I think there's a pretty good chance that's the problem. If not, we need to question the assertion that "everything is lined up correctly" and go through the process of setting up drivetrain adjustments from scratch.