Play the game with your computer's resource monitor running. If Minecraft is maxing out both your CPU and your RAM (using the entire 2GB you allocated), then your game is being lagged by java's memory management. Increasing the RAM allocation will make a huge improvement in this case. If the RAM is not at the max but Minecraft is still maxing out your CPU, then your mods are doing to much computation and there isn't much you can do besides lower the render distance (and turn on VBO rendering if that option is available in 1.7.10). Another trck you can do in this case is use a dedicated server instance on the same computer, which will spread the computation across more CPU cores, but you only have a dual-core CPU, s this won't help much (unless you run the server on a different computer). If your CPU isn't maxed out, then your lag is coming from your graphics card. You'll have to play with your graphics settings and texture packs to improve the performance, but a mod that does a lot of old-fashioned direct rendering is going to drag-down your frame-rate no matter what settings you use.
I hope that helps. If it is any consolation, my friend who has an even wimpier laptop than yours got a huge FPS increase when she switched to Minecraft 1.8, which uses a more modern rendering style (it is much less CPU intensive and stores more data in the video RAM). I've made a few mods for 1.8, so I'm sure your favorite mods will be updated in the coming months.
Thanks alot DrCyano