Sgritn,
According to the specs, your Giant Cypress has a triple chainring up front, and a 7 speed cassette in the back. The numbers from 1 to 3 on your left correspond to one of the three chainrings up front, and the numbers from 1 to 7 on your right correspond to one of the 7 items on the cassette in the back.
Basically, all things being equal, the more number of teeth in the chainring, the harder it is to pedal; the more number of teeth in the cassette, the easier it is to pedal.
Pick a cassette/chainring combination that makes it easy for you to maintain your speed. Which combination you choose depends on a lot of things -- if you're riding into the wind, if you're riding on flat ground ... or uphill ... or downhill, if you're tired, how fast you can spin the pedals and still be efficient.
If the gears are too loose, try a "harder" combination. You don't need to spin the pedals like a cartoon character, but you don't want to have your gears set so that it takes extreme effort -- this is tough on the knees.
Oh, and the 'whir whir' sound? I'm not sure -- do you hear a similar sound when you back pedal your bike? It could just be the sound of their bearings.
Happy trails! 
- Melissa
I'll get back on the bike soon, I promise!