The USB port is able to provide up to 500mA current. The ICD2 itself need
about 100mA.
If your target board needs more than 300mA, then you need an external power.
However, if you only use the ICD2 as the programmer, then the ICD2's adapter
does not need external power. And all chips should be working.
For the ICD2 marked "5v0-tar," "3v3-tar," and "self-tar".
"5v0-tar" is for those 5V devices
"3v3-tar" is for those 3.3V devices
"self-tar"will disconnect the power from the ICD2 to the target.