I just want to know what sets are allowed in Type II Magic Tournaments.

7th-OD-TR-JU-ON-LE

every set through 7th edition is ok.

Are there any restricted cards?

Type 2 is basically all the current core set (once 8th edition is released 7th-OD-TR-JU-ON-LE-SC wont be legal for type 2)

No restricted cards?

The only format that has restricted cards is t1

"Type 2 is basically all the current core set (once 8th edition is released 7th-OD-TR-JU-ON-LE-SC wont be legal for type 2)"

Bahamut, for some reason you have this mixed up a little bit. Once 8th edition comes out, only 7th will rotate. Once Mirodin comes out, then Odyssey block rotates.