So just got my wheelset sent and noticed this small nick in the front rim.   

Is this something you guys would make a big deal about or is it still going to function 100% normal??

I ordered from MerlinCycles BTW.

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If you bought it new I'd see if MerlinCycles will swap it out for a new one. Even if its cosmetic and doesnt affect the tire seating up and holding air, it shouldnt have a ding if its a brand new rim. 

+1 what Enoch said. Take a picture, email them and see what they say. Dont use it or try to see if it works until you hear from them. just my .02.

sometimes those things are cosmetic, and sometimes they will give issues. I had a similar problem with a set of crabon roadie wheels i ordered, where the brake track had a slight wave in it in an area about an inch long. I immediately took pictures and sent it to the seller, who told me that this was a cosmetic issue and they would be safe to ride. Just to be safe, before i used them i swung by BicycleSport(shameless plug for the guys) and had them take a look. They called Reynolds for me and confirmed that it was a cosmetic issue and they they could still be warrantied if anything happened down the road. A couple thousand miles later i can see no wear on the brake track and have never had any issues from the wheel.

Good luck getting them to send you a replacement, stuff happens and most of the time retailers are pretty good at trying to please the customer.