Oddly enough, there are two versions of MacBook 2,1--according to MacTracker which is a great free program--and it seems yours is the 13" Mid 2007 with, indeed, the 2.16 GHz Intel Core 2 Duo. It can be upgraded to 3.0 GB of RAM. I did that on a similar MacBook and it did not mind it at all and things worked better.
Its latest software is . . .
. . . wait for it . . .
. . . "Latest Release of MacOS X"
It lists as its original OS as 10.4.9 then "Later OS 10.4.10" so I suspect that is what you have. I forget if there is a 10.4.11." Anyways, you can upgrade all the way, conceivably to Lion. I do not "wike" Lion so you can probably do well to simply get Snow Leopard and go FAR FURTHER THAN YOU THOUGHT with 10.6.8!
Back up your data--use a cloning program like the free Carbon Copy Cloner or the one I use, the not-so-free Super Duper! to an External HD that you format for Mac--use Disk Utilities and that way if you get messed up, everything is easily recovered.
There is also a MacBook EFI Firmware Update 1.1 . . . but looking at the LinkyPoo it appears that you have already had that updated!
1-2 TB External Hard Drive: $100-200
Snow Leopard: $30
2 GB RAM Chip to make 3 GB total: ~$30
Happy Mac Computing: Priceless!
MacBookPro 2.8 GHz Intel Core i7, 16 Gig RAM, 10.8.3--"Okay . . . I will try Mountain Lion!"
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