I recall hours of fun with a heavily modified CFS2 install, this had many ships,effect mods and numerous scenery additions, I had back then a p200 with 128MB of RAM and 2 Voodoo 2's, later, a Geforce 2 MX400! (wow!)
Any old timer from the screenshot forum will remember my consistent to the point of annoyance screenshots, mainly CFS2 and all bar a few with my humble specced PC above.
In short, the system requirements you mention were unimagined back when CFS2 was developed! Its a little like saying you need a 10Ghz CPU for CFS3
I never had a hint of trouble with CFS2 and a machine well below the minimum specs required by CFS2 (266mhz!) I therefore have to point out that you certainly do not need 1.5GHZ of CPU power, nor 512MB of RAM for CFS2 to run well at high settings.
480 x 720 x 16 is a resolution I never used with my p200 nor, for that matter, my current PC...... ???
Ultimately, Your looking good with CFS2 with any Pentium2 and a GeForce2 MX , with 256MB and Win 98, CFS2 will run as sweet as you like.
I now enjoy CFS2 @ 1600x1200 with anti alaising & Max settings, my specs have improved ten fold, my enjoyment of CFS2 is still as good as it was back then.
CFS2 p200 256mb pc100 RAM 64MB GeForce2 MX400 Old School.