Thread.sleep() sends the current thread into the "Not Runnable" state for some amount of time. The thread keeps the monitors it has aquired -- i.e. if the thread is currently in a synchronized block or method no other thread can enter this block or method. If another thread calls t.interrupt() it will wake up the sleeping thread.
Note that sleep is a static method, which means that it always affects the current thread (the one that is executing the sleep method). A common mistake is to call t.sleep() where t is a different thread; even then, it is the current thread that will sleep, not the t thread.
t.suspend() is deprecated. Using it is possible to halt a thread other than the current thread. A suspended thread keeps all its monitors and since this state is not interruptable it is deadlock prone.