So with the config listed below I am using basic "etherchannel protocol".  Correct?

Tricky question. Not sure if you would call it a protocol as much as technology.

Are there any issues with this configuration? Are there pro/con's going with PagP or Lacp over my current configuration?

Not necessarily, having them "on" doesn't hurt at all. PagP (Port Aggregation Protocol) is a Cisco proprietary protocol used to form etherchannel links between Cisco switches. LACP (Link Aggregation Control Protocol) is a protocol used to for etherchannels between Cisco switches and switches from other vendors that support LACP.

Each protocol supports 4 modes.

PagP - On, Off, Desirable, Auto

LACP, On, Off, Active, Passive

(Correct me if I'm wrong)

I know with LACP you can configure thresholds (minimum links) which would allow you to determine how many links would be acceptable to lose before your etherchannel will shutdown.  Thereby forcing traffic to route to an alternative path. This would be good for latency sensitive applications. So you can't do this with the configuration you have. The etherchannel you have will stay up as long as you have active links in it.

Also, with LACP I believe you can define standby links to use in the etherchannel if any links in the "active" bundle fail. With PagP all links are "active" or "on".

Just read that somewhere, please correct me if I'm wrong.

Here is the info from a Cisco Document....

EtherChannel On Mode

EtherChannel

on mode can be used to manually configure an EtherChannel. The on mode forces a port

to join an EtherChannel without negotiations. The

on mode can be useful if the remote device does not

support PAgP or LACP. In the

on mode, a usable EtherChannel exists only when the switches at both

ends of the link are configured in the

on mode.

Ports that are configured in the

on mode in the same channel group must have compatible port

characteristics, such as speed and duplex. Ports that are not compatible are suspended, even though they

on mode.

Caution

You should use care when using the on mode. This is a manual configuration, and ports on both ends of

the EtherChannel must have the same configuration. If the group is misconfigured, packet loss or

spanning-tree loops can occur.

Please rate posts that help,

Mike