Question : EtherChannel on Cisco 2960 switch intermittent dropped packet

I have a IBM BladeCenter BNT Virtual Fabric switch and has configured 2 ports to trunk to a Cisco 2960 switch. On the 2960, I have enable EtherChannel on the 2 ports and it appears to be working fine.
However, I started to get dropped packets on the EtherChannel-  When I do a continuous ping, I get random time outs. When I pull out any one of the cables, the connection stabilizes and I do not have any packet loss. As soon as I have both links in place, packets are dropped again.
 
On my 2960 -

interface Port-channel 1
switchport mode trunk
!
interface GigabitEthernet0/46
channel-group 1 mode on
!
interface GigabitEthernet0/47
channel-group 1 mode on
!

Answer : EtherChannel on Cisco 2960 switch intermittent dropped packet

report back with the output of these commands please:

show etherch detail
show etherch load-balance
show int trunk
show int gi0/46 status
show int gi0/47 status
show int gi0/46
show int gi0/47


Billy