In plain, simple English, what is the difference between GPL (version 1) to GPL (version 2)?
See http://en.wikipedia.org/wiki/GNU_General_Public_License#Version_1:
GPLv1 disallows binary-only distribution and the "viral" behavior that modifications need to be under GPLv1, too.
GPLv2 includes that distribution is not allowed if binary-only is the only possible distribution (e.g. due to some odd court decision). Additionally, the LGPL was introduced together with GPLv2.
(IANAL, etc.)
http://en.wikipedia.org/wiki/GNU_General_Public_License#Version_2:
According to Richard Stallman, the major change in GPLv2 was the "Liberty or Death" clause, as he calls it — Section 7. This section says that if somebody has restrictions imposed that prevent him or her from distributing GPL-covered software in a way that respects other users' freedom (for example, if a legal ruling states that he or she can only distribute the software in binary form), he or she cannot distribute it at all.
LGPL was also introduced in v2.
Isn't largely irrelevant as the GPL 2 dates back to June 1991 (!!) and replaced the predecessor which nobody uses anymore?
A more relevant question may be about the differences between GPL 2 and 3.