After some searching I came across an article where someone else had this problem but on a Nortic Tug and filled in the chine with fiberglass. He had a nice step by step with pics but I am not willing to go that crazy.
http://www.ct-shoreline.com/nentoa/idea ... .slap.html
Someone else used those floating noodles to stop it by sticking them in under the chine.
I posted this to see if anyone else had this problem and to see if anyone has came up with an idea to deal with it. Dont get me wrong its just annoying, not a big issue like the noisy cycling refrigerator

Thanks
Matt