If I aggregate two NIC ports on a ESXi Server do they also need to be aggregated on the switch for it to work properly? I do not have a smart switch so I have not been able to do this but other then failover i am wondering if there was any port to aggregating the ESXi NIC ports
Yes, to get link aggregation working properly (either LACP or EtherChannel), you need to have that configured on both the client and the switch. I also believe that VMware don't support 'dynamic' LACP properly, only 'static' LACP (whatever that is). I use EtherChannel on a Cisco 3750 and it works great.
edit to add: to configure on the VMware side, you need to set the Load Balancing policy to 'Route based on IP hash' in the NIC Teaming tab on the vSwitch.