Do start over with a fresh bag of flax seeds if you can - they go rancid with long storage (before they ever got to your house) because they're full of oils and some protein. Keep them in the freezer when you get them home.
If you try again with fresh flaxseeds and still don't like the smell - you must be one of those people who finds the smell of FSG unpleasant. I think I've read that a few other times. Here's some info about preserving FSG: science-y hair blog: Preserving Your Homemade Hair Gels
Refrigeration is #1 with me!