In order to upgrade CI from 1.7 to 2.X, you have to follow this complete tutorial.
http://ellislab.com/codeigniter/user-guide/installation/upgrade_200.html
Follow it exact step by, And for your reference in CI 2.X you have to Update your Class extension, means All core classes are now prefixed with CI_. Update Models and Controllers to extend CI_Model and CI_Controller, respectively.
$this->CI->load->library('session');
$this->CI->load->model('administrator');
These lines will not work in CI 2.X