I created a subinterface on physical Ethernet interface of my 2811 router.
I effect I created two virtual lan vlan 1 and vlan 10.
Also both logical interface is assign respect ip address and none on the physical interface.
I have created class-maps and a policy map for the lan --- but I am unsure which interface to apply the service policy.
Do i apply the service policy to the physical interface ( no ip address) or both sub interfaces.
Apply the policy-map to the subinterfaces (as these are your logical interfaces). If you are simply using them for classification (setting/changing dscp, for example) or rate-limiting/policing, then this should be fine.
If you are actually trying to do some queueing (cbwfq/llq), then you should create a parent policy to shape the traffic to a specific congestion rate, for which the qos would start kicking in.
shape average 50000000 (50 megs in this case)
service-policy MyPolicyVlan1 (whatever the name is of your actual queueing policy)
Do the same for the second vlan as well ...
service-policy output parentVlan1