It contains code to read the first 47 pages of the attached NAND flash, reserved for boot1, decrypt them with a fixed AES key, hash them with SHA-1 Engine, and compare the hash with a value read from OTP memory. If the hashes do not match, the system will refuse to proceed to boot1, causing a brick. However, if the hash in OTP is all zeroes, then the system will always boot — this is true of development consoles and probably also during the manufacturing process. For more discussion on this subject, see bushing's HackMii post.
The division between boot0/boot1 allows the RSA signature initialization and verification to be updated at the factory without rebuilding the Starlet core.
The assembly code of boot0 can be found here.
Error codes are flashed through a debug port.
|0xF2||boot1 hash mismatch|