Link bundle between 2950 & 7204VXR (NPE400)

Dear Team,
We have made etherchannel between Cisco WS-C2950T-24 L2 & Cisco 7204VXR (NPE400) router for load balancing purpose.
But the traffic from L2 switch to router is just being forwarded on single port & other port is idle while router is properly load balancing on both the ports.
Below is the configuration for both the switch & router.
Switch Configuration ->
interface Port-channel2
description ## Uplink bundle to VXR ##
switchport access vlan 102
switchport mode access
no ip address
interface FastEthernet0/5
description ### To VXR Port-Fa0/0 ###
switchport access vlan 102
switchport mode access
no ip address
load-interval 30
duplex full
speed 100
channel-group 2 mode on
interface FastEthernet0/6
description ### To VXR Port-Fa0/1 ###
switchport access vlan 102
switchport mode access
no ip address
load-interval 30
duplex full
speed 100
channel-group 2 mode on
Switch#show etherchannel summ
Flags:  D - down        P - in port-channel
        I - stand-alone s - suspended
        H - Hot-standby (LACP only)
        R - Layer3      S - Layer2
        u - unsuitable for bundling
        U - in use      f - failed to allocate aggregator
        d - default port
Number of channel-groups in use: 1
Number of aggregators:           1
Group  Port-channel  Protocol    Ports
------+-------------+-----------+-----------------------------------------------
2      Po2(SU)          -        Fa0/5(Pd)   Fa0/6(P)
Switch#show etherchannel load-balance
Source MAC address
Router Configuration ->
interface Port-channel2
description ### Link Bundle to L2 ###
ip address 172.16.10.66 255.255.255.224
load-interval 30
hold-queue 150 in
interface FastEthernet0/0
description ### To L2 - Port - Fa0/5 ###
no ip address
load-interval 30
duplex full
speed 100
channel-group 2
interface FastEthernet0/1
description ### To L2 - Port - Fa0/6 ###
no ip address
load-interval 30
duplex full
speed 100
channel-group 2
We have tried changing load-balance algorithm on Switch but result is same. Can somebody please help for load balance the traffic from L2 to Router?
Thanks in advance.
Nilesh.

Leo,
Thanks for the info. And please forgive me, I am not doubting your knowledge, just wanted to make sure about it. However, are you sure that channel numbers are supposed to be same? If that is the case, 2950 supports only up to 6 channels, and 3550 I think about 24 if I remember correctly. So what happens when I configure more then a 6 channels of 2950s into 3550. Next channel after six-th one would be 7, 8 and so on. However, I cannot configure channel # higher then 6 on 2950. With this, I am limiting 3550 to only 6 channels.
Now, I have not got experience in doing ether-channels. However, I was thinking logicly and thoughed that Cisco would not limit 3550s to 2950 limitation.
Please advise.
Thanks

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