Why did you comment out the first Fetch Next? If you uncomment it, then it will work. The problem you are having with the code as it is is that a the end of the first run @@FETCH_STATUS is not zero, (that's why you drop out of the loop). But the only thing that changes @@FETCH_STATUS for your connection is doing another fetch. So, with the code as you have it, running it the second time, you get to the WHILE statement, @@FETCH_STATUS is still not zero, so you never even enter the loop.
But a much more important question is why are you trying to learn about cursors? If you are new to SQL Server, you should know that while there are a few cases where cursors are the only or the best way to do things, in virtually all cases you want a set based solution. Cursors in SQL are generally major performance problems. They work fine when you have only a few rows, but have terrible performance when you get a "real world" database size.
Tom