I have found a work around for this issue of nested looping, simply by taking the UpdateCursor "while" loop out of the 1st "while" loop. I have instead created a loop of the feature classes and calculated on those on those once the first "while" loop had finished.
Here is the loop I run after the 1st loop in place of it being inside the 1st loop as shown in the attachment.
gp.Workspace = "F:\PROJECTS\VLUIS\PROCESSING\OUTPUT\PILOT\TEMP"
fcList = gp.ListFeatureClasses ("*","all")
fc= fcList.Next()
print fc
while fc <> None:
curs = gp.UpdateCursor (fc)
rows = curs.next()
tenure = rows.GetValue("TENURE")
public = rows.GetValue("lu_code")
publicdesc = rows.GetValue("lu_desc")
oldavpcc = rows.GetValue("AVPCC")
oldavpccdesc = rows.GetValue("AVPCC_Desc")
print "starting if on" +fc
while rows:
if rows.GetValue("TENURE")=="PUBLIC":
rows.AVPCC_CODE = rows.GetValue("lu_code")
curs.UpdateRow(rows)
rows.AVPCC_DES = rows.GetValue("lu_desc")
curs.UpdateRow(rows)
elif rows.GetValue("TENURE")=="PRIVATE":
rows.AVPCC_CODE = rows.GetValue("AVPCC")
curs.UpdateRow(rows)
rows.AVPCC_DES = rows.GetValue("AVPCC_Desc")
curs.UpdateRow(rows)
else:
rows.AVPCC_CODE = "999"
rows.AVPCC_DES = "UNCLASSIFIED"
curs.UpdateRow(rows)
rows = curs.Next()
del curs
print fc
fc= fcList.Next()
