Assuming you mean 2GB RAM, it will run a full Linux. I was using a 2008-vintage laptop with similar specs as a secondary machine until recently, and it was capable of handling many light workloads. Retro gaming up to the 16-bit era should be fine. 720p video playback from local storage (never tried streaming) was fine. Modern websites were very hard on it, though, so I didn't normally use it in that capacity.
Just pick a distro that isn't too bloated, and a desktop environment that's suited to older machines and doesn't expect too much of the hardware, and you'll be fine.
(My laptop still works, by the way. I gave it up because 1. I got a good deal on a machine with much higher specs and 2. I run Gentoo, and compiling a modern version of GCC on a dual-core of that vintage takes longer than you would expect.)