>Michael unfortunately I am no longer a Java Developer I am developing C# under VS 2005 with .NET2.0 That means I have to use XSLT 1.0
No, it doesn't: try Saxon for .NET.
>So my another question has not been yet answered. Can I use xsl:if in xsl:while in XSLT 1.0 like the example above?
There's no such instruction as xsl:while. If you mean can you use xsl:if within xsl:when, then yes, of course you can.
Michael Kay
http://www.saxonica.com/
Author, XSLT Programmer's Reference and XPath 2.0 Programmer's Reference