Can I loop through a table variable in T-SQL?

Add an identity to your table variable, and do an easy loop from 1 to the @@ROWCOUNT of the INSERT-SELECT.

Try this:

DECLARE @RowsToProcess  int
DECLARE @CurrentRow     int
DECLARE @SelectCol1     int

DECLARE @table1 TABLE (RowID int not null primary key identity(1,1), col1 int )  
INSERT into @table1 (col1) SELECT col1 FROM table2
SET @RowsToProcess=@@ROWCOUNT

SET @CurrentRow=0
WHILE @CurrentRow<@RowsToProcess
BEGIN
    SET @CurrentRow=@CurrentRow+1
    SELECT 
        @SelectCol1=col1
        FROM @table1
        WHERE RowID=@CurrentRow

    --do your thing here--

END