I just set up an L2 port channel for testing purposes to a server using two GigE links. Both of the interfaces are showing up/up and passing traffic, and seem to be load-balancing correctly, but the port-channel interface is showing down/down.
The configuration on both of the physical interfaces is:
switchport mode access
channel-group 2 mode desirable
Any ideas on why the Port-Channel interface is showing down/down?
I doubt whether your Dell servers are able to do PAgP, because it is Cisco proprietary. That would explain why the links are not joining the channel.
There is a possibility that the Dell will do LACP. In that case, you would need "mode active" rather than "mode desirable".
But the surest way to get it to EtherChannel is to force the teaming on the Dell, and to configure the switchports as "mode on".
Once you have done that, could you post a show etherchannel n detail. The "detail" keyword is important. I think you are using channel 2 in your config, and the output you posted shows only channel 1.