It is running the procedure from start to end. The FMTOnly value is set to OFF by default. So your code will run from start to finish. Based on the logic you are using 1 will never = 0, so it will never fall into the loop. Was the intent to have it fall into this loop?
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http://www.sqlservercentral.com/articles/Best+Practices/61537/
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http://www.sqlservercentral.com/articles/SQLServerCentral/66909/