You're observing a combination of the peculiar behavior of dd with the peculiar behavior of Linux's /dev/random. Both, by the way, are rarely the right tool for the job.
Linux's /dev/random returns data sparingly. It is based on the assumption that the entropy in the pseudorandom number generator is extinguished at a very fast rate. Since gathering new entropy is slow, /dev/random typically relinquishes only a few bytes at a time.
dd is an old, cranky program initially intended to operate on tape devices. When you tell it to read one block of 1kB, it attempts to read one block. If the read returns less than 1024 bytes, tough, that's all you get. So dd if=/dev/random bs=1K count=2 makes two read(2) calls. Since it's reading from /dev/random, the two read calls typically return only a few bytes, in varying number depending on the available entropy. See also When is dd suitable for copying data? (or, when are read() and write() partial)
Unless you're designing an OS installer or cloner, you should never use /dev/random under Linux, always /dev/urandom. The urandom man page is somewhat misleading; /dev/urandom is in fact suitable for cryptography, even to generate long-lived keys. The only restriction with /dev/urandom is that it must be supplied with sufficient entropy; Linux distributions normally save the entropy between reboots, so the only time you might not have enough entropy is on a fresh installation. Entropy does not wear off in practical terms. For more information, read Is a rand from /dev/urandom secure for a login key? and Feeding /dev/random entropy pool?.
Most uses of dd are better expressed with tools such as head or tail. If you want 2kB of random bytes, run
head -c 2k </dev/urandom >rand
If your head doesn't have a -c option (it's not in POSIX), you can run dd, because /dev/urandom happily returns as many bytes as requested.
dd if=/dev/urandom of=rand bs=1k count=2
In general, when you need to use dd to extract a fixed number of bytes and its input is not coming from a regular file or block device, you need to read byte by byte: dd bs=1 count=2048.
/dev/randomwill block if there is not enough entropy available to generate the number of digits you want. it simply takes time to gather that amount of high quality psuedo random "randomness"... Either use/dev/urandomfor a less random "random" value, or check your entropy pool (in a loop, and wait as need be)... – Peter.O Feb 28 '12 at 21:18