I tried to use RSolve to solve a two variable recursive equation in Mathematica, but it simply repeats what I type.
Is it possible to solve two variable recursive equations in Mathematica?
Perhaps you should include the equation in your question, as it is possible you are simply using RSolve incorrectly.
Mathematica can solve some two-variable recurrence equations, but not all.
Sometimes the free package Guess.m can solve what RSolve cannot. (You must request access to the file; contact information is on that page.)
I discovered RecurrenceTable[] today while trying to plot the Logistic map. It gives a table of values, symbolic if you like, given a set of recurrence relations and initial conditions. Oh, and it's really fast.
For example,
logisticMap[r_,x0_,maxn_]:=RecurrenceTable[{x[n+1]==r x[n](1-x[n]),x[0]==x0},x,{n,0,nmax}];
Manipulate[ListPlot[Transpose[{Range[0,maxn],logisticMap[r,x0,maxn]}],PlotRange->{0,1}],{{r,3.485},0,4},{{x0,0.432},0,1},{{maxn,500},10,1000,1}]

The documentation for RecurrenceTable gives examples for two-variable relations.
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