Well I just purchased myself a brand new 05 LTZ400 (which is one sweet quad I must say) but I noticed a small leak where it looks like the housing for the water pump is connected to the engine. Has anyone else had this problem? Do I need to ride it a bit for the seals to expand a bit before I take it back to the dealership or is this something that isn't normal? I've only riding it for like 2 hours and all I notice is a very small amount of water starting to form a dip under that housing that connects to the coolant supply line from the raditor. Any input would be great, thanks. Besides that the quad is working great and so far I love it.

 

Take it back in. You shouldn't be leaking any fluids on a new quad. Mine's an '03 and the only coolant leak I have ever had was a loose hose clamp at the top of the radiator.
However, the other trouble indicated by the leak it sounds like you are describing is possibly a bad waterpump seal or the impeller. They are made of plastic and have been known to fail on occasion. It's a pain to change. You have to pull the clutch case to get to the waterpump housing, to get to the impeller, etc.
Use your warranty and make them fix it immediately. That way if it continues to be a problem, you are on top of it and not paying anything out of pocket to fix your new quad. .