Hello Joseph,

have a look at the following it describes some bugs that might apply to your case

http://www.cisco.com/en/US/products/hw/switches/ps700/products_tech_note09186a00801751d7.shtml#subtopic3d

meaning of input drops:

Input queue - The number of packets in the input queue. Size/max/drops means the current number of frames in the queue/the max number of frames the queue can hold before it must start dropping frames/the actual number of frames dropped because the max queue size was exceeded. The input queue size can be modified by issuing the hold-queue in interface command. Be careful when increasing the size of the queue as this may result in traffic delays because the frames get stuck in the queue for a longer period of time.

from

http://www.cisco.com/en/US/products/hw/switches/ps700/products_configuration_example09186a0080118a5c.shtml#step12

Hope to help

Giuseppe

Also, make sure you are using 10Gig certified cabling. It should be aqua in color. If you are using standard 1 gig cable (yellow or orange in color) they may not be up to the task.