It should be stopping on errors, that's something to look into. PG puts everything out on stdout so you have to parse output looking for error lines. We've had some problems getting everything stuffed back into aolserver at times.
If you turn VERBOSE=ON in your nsd.tcl file all queries will be logged . There's no equivalent in the bootstrap installer at the moment - the switch "--echo-all" needs to be passed to PSQL. We don't want to do this by default though - the datamodel's HUGE. There's no PSQL option to just dump queries that cause errors ...