I'm following the example in the WAAS Deployment Cookbook (v1.0) starting on page 20. We have a data center design exactly like the one in that chapter "Dada Center, WCCP Interception."
The only thing that is missing in the cookbook configuration is in the WAAS WCCP Configuration - there is no mention of what egress-method to use. I understand that negotiated-return is NOT recommended, as it shunts everything to the CPU.
So should we use generic-GRE since we're in a GLBP environment?
If so, how would the GRE tunnels between the two 6505 switches and the WAE-7341 be configured?
I think they used a generic example, it's like a loopback address. I think you may be out of addresses on your vlan5 (maybe you can use 4 and 6?) The "tunnel source vlan5" would be the important part. Good luck!
You are correct, you should utilize generic-gre so the traffic will be processed in hardware. Generic-gre requires WAAS 4.1.x and the configs are here...Configuring a GRE Tunnel Interface on a Router
Hope that helps,