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Cisco 4500 Load Balancing Policy Best Choices

We have two Cisco 4500's running IOS 3.06 and using VSS. On one of the interfaces of the port channel that connects to our Core switch, we are setting a high output drop rate. The switch hosts 95% of our VMware Server and VDI environment. Cisco support stated the drops are mostly like caused by one of the interfaces is getting overwhelmed. Since the Load Balancing policy is set to Source IP, and support suggested we change it. Which is the best LB policy to use?
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Support is claiming the interface is overloaded yet when I look at the stats, the 10GB interface is only averaging around 35%. Also our LB policy is already set to Source Destination IP
Since the storage and all virtual environment connect through this switch, I am think source destination mac would be the best option from the research I have done. My questions are, since this is a global change, how disruptive is this on the rest of the switch / traffic? Want command would I use to make this change.

Any value in using LACP?
LACP only negotiates the etherchannel. It has no bearing on actual load-balancing of traffic as such in terms of policy.

What does the particular interface connect to?