"are these settings correct? "
Answer depends on your QoS requirements. That said, your policy it (ahem) unusual.
From what you posted in a later post, re-guarding QoS goals, something like this might be more suitable.
class-map match-any VIDEO
match dscp cs4
match dscp af41
policy-map QOS_OUT
class VIDEO
bandwidth percent 25
class class-default
bandwidth percent 75
fair-queue
int fa0/0
service-policy QOS_OUT out
If you video is "streaming" (you noted IPTV), you'll want to guarantee it a little more than its "average" video bandwidth requirement. If you see drops, try increasing its bandwidth allocation in very small increments and/or increase the queue depth in that class.
BTW - I removed WRED as I highly recommend against using it unless you're an QoS expert.
FQ in class-default may handle most of your QoS needs. I.e. you shouldn't need another class.
BTW, you can remove class maps w/o removing the whole policy. The "trick" is you must remove it first from the policy.
e.g.:
conf t
policy-map QOS_OUT
no class DATA
exit
no
class-map match-any DATA
end
I.e. you can also "edit" changes in the policy map and/or class maps.
