"Listen to your body and don't keep on taking something that is making you feel sick."
Sometimes that is a healing reaction though. Chelation for example makes my muscles ache and sometimes gives me mild headaches, but I know it is healing me so I do it. The key is that the treatment should make sense, and that while the symptoms from it might be unpleasant, they should still be a level that is tolerable, not something intolerable. Lugol's has 12.5 mg of iodine in 2 drops, so half a drop would provide just over 3 mg of iodine. I guess you could go to 1/5 of a drop if necessary, however imo you should try to take at least half or 1/3 of a drop a day long term.
"Remember birdlady? She ended up losing hair and getting a lot sicker from taking large doses of iodine from what I remember."
I doubt that losing hair was due to iodine intake. In fact, a number of articles mention possible hair loss due to iodine deficiency.