The normal rules for positioning the blinds do not apply when there are only two players at the table. The player on the button is always due the small blind, and the other player must pay the big blind. The player on the button is therefore the first to act before the flop, but last to act for all remaining betting rounds.
A special rule is also applied for placement of the button whenever the size of the table shrinks to two players. If three or more players are involved in a hand, and at the conclusion of the hand one or more players have busted out such that only two players remain for the next hand, the position of the button may need to be adjusted to begin heads-up play. The big blind always continues moving to the left, and then the button is positioned accordingly.
For example, in a three-handed game, Player 1 is the button, Player 2 is the small blind, and Player 3 is the big blind. If Player 1 busts out, the next hand Player 2 will be the big blind, and the button will skip past Player 2 and move to Player 3. On the other hand, if Player 3 busts out, Player 1 will be the big blind, Player 2 will get the button and will have to pay the small blind for the second hand in a row.