Hi Yoav,
What are the values of λ, μ and T? I would start with a simpler example that works and adapt it to your problem. e.g.
λ
μ
T
NestWhileList[If[#[[1]] < 2, #*2, #*3] &, {1, 2, 3}, #[[3]] < 12 &] (* {{1, 2, 3}, {2, 4, 6}, {6, 12, 18}} *)
Thanks Rohit
The values were predefined. The mistake was stupid. I put the "&" not after the "T" in the test.I looked at your example and realized it. Many thanks.