to date, pvg hasn't really handled too many transfers (after all there are very few international destinations that can't be reached more conveniently from other places) so the process isn't all that smooth. on the other hand, the current terminal is pretty easy to navigate.

you need to pick up your bags, clear customs (really just a matter of walking through one of the green doors with a smile).

then go upstairs and proceed to the check-in counters. honestly, i'd feel completely comfortable with a 2 hour connection and would even shoot for ~1.5 if i had a ticket that was reasonably easy to change.