I have two older kids (9 and 11) and an 11 month old, so it's been awhile since the potty training has occurred in my house. However, this is what worked for my daughter. We kept the little kid potty in the living room and basically let her run around naked for a week. (I was a sham at the time.) I would ask her to sit on the potty about every thirty minutes or so, often with a snack or potty training book of some sort. I never made her do it, though. I was afraid if I did then it would become a power struggle. The first time she went I made such a huge deal out of it by dancing and singing a made up potty dance/song that after that first time she was more than willing to go so that she could see mommy act like a nut again. Each time she used it, we moved the potty closer to the bathroom until it was actually in the bathroom. When she used her potty in the bathroom for the first time it was time for another celebration.
I used the same method for my son, but with him when it was time to use the big potty we put cheerios in the toilet to give him something to aim at to minimize the mess. (A step stool is a must for boys!)
For pooping, we kept M&M's on the back of the toilet in a plastic bowl with a lid. Every time the kids pooped in the potty, they got to have two. (Two candies for going number two, they thought this was hilarious!)
At two years old, she is still young, so remember that she still has time. Every child learns at their own time.
Have fun with it. It can be frustrating at times, but I found that by making it fun instead of forcing the issue, both kids seemed to be more willing. We plan on doing the same thing with the baby. Good Luck!