Question is this normal.

[Not So Fast]

That ain't normal

Well Brought the rim to the GF dealer around the coner, and he told me this is normal for this hub, showed me 2 other HIFI Plus they did the same thing. Wow this hub stinks...

If that's normal...It's junk. If GF knows they have a defective product they need to recall it. Post your issue on the MTBR site, on the GF or Trek forum. There are probably plenty of folks that have resolved the issue.