Can I use a 2GB sd Card with my DC-T50 camera

2GB us the ceiling which SD cards operate. After that, they go to SDHC (Secure Digital High Capacity) which can only be used in SDHC compatible cameras. You should be fine.

Be allow me to make an pitch for using several smaller cards, rather than one large one. Reason being, insurance. Any memory card can fail or become corrupted. And when you're on vacation the last thing you want is to lose the opportunity to take pictures until you can recover that media card with a software utility. If your card goes bad, swapping another one for it at that moment is of advantage so you can keep taking pics. Then, later when you're in front of your PC, you can use a utility like F-recover to get back your pictures and recover your card.

Anonymous is right on this one- here's a discussion for anyone who is still wondering about this. As the forum says, this is just the camera's limitation and there isn't a way to update it. Cards larger than 512mb won't work with this camera, but you can of course buy multiple 512mb cards if you need more storage.