Dear Declan,
just to make sure, that it is what you want to do. You see, if you want to create a list, there is a much easier way to do that. In the code above there are three functions Do, Sow, and Reap. This is because I understood that you want to use a Do loop. You can of course also do this:
t = 500; d = 200; alpha = 0.5; beta = 0.4; gamma = 0.1; delta = 0.17;
Table[{t = ((1 - alpha)*t) + (beta*d), d = (-delta*t) + (1 + gamma)*d}, {i, 1, 10}]
which does the same thing with only one (!) function.
Cheers,
Marco