I don't think your chain SHOULD be hitting your chain stay, even when in granny gear. How about getting your bike a derailleur tune-up now that you've got it assembled?
One possible problem might be if the previous owner changed the original cassette and maybe the original derailleur can't handle the new range of gears. It's possible to fix such a thing by getting a different derailleur to handle the wider cassette I believe. But if the bike has all it's original parts, there shouldn't be chain chatter if the derailleurs are properly tuned in.
If your chain is "too loose" then there's another good reason to get a thorough tune-up.




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