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Sounds to me like the chattering is an expression of nerves and excitement. Dogs often have muscles tensed in their jaws when excited or nervous. Its one of the more obvious things you can see in their expression when trying to read a dog. Many dogs "smile" for the same reason, its an excited/nervous mouth movement. Usually starts with a dog that has a lot of submissive behaviors and is very bonded to their owner.
A dog that licks a scent or smells another dog and drools while its teeth chatter is called "chatter-jaw" and its a way of garnering information via the Jacobsen's organ in the roof of the mouth. This organ goes directly to the brain and is the fastest and most accurate way for a dog to dicipher a scent. Male dogs will often do this with another dogs urine -- hoping the dog is female and in season!