Maybe the problem is, that Timer2 is 8bit and therefore can only count to 255? (and we are counting up to 1700?)
Sounds highly likely - can you reformulate the timer1 code to work with counting to 255 or less first, then try porting to timer2. That breaks down the task into two smaller subtasks via a working intermediate step (always a good approach).
Also I note you use pin 9 for timer 1, pin 3 for timer2 - sounds wrong to me, pin 9 is timer1's A pin, pin3 is timer2's B pin. Why not use pin 11 for timer2?
The two timers are similar, but different - in particular timer1 has more modes I believe, so you need to see which mode is being used and see what the equivalent mode for timer2 would be. The mode control bits will not be the same I'm pretty sure.