When Auto-Correction is turned on (Settings > General Keyboard > Auto-Correction) your iPad2 will try and help you by correcting what it thinks are typos. If you hate and despise that feature you can turn it off following the trail noted above.
But if you have a kinder, gentler nature and choose instead to add words to the iPad2 dictionary you do so automatically every time you reject words the iPad suggests. Tap a word to reject the correction and add the word to the keyboard dictionary. So the first time I typed Gravley for my name and it suggested Gravely I gritted my teeth and kindly and gently added Gravley to the dictionary so I would not have that problem any more.
As with most Apple products, it’s your choice.