Answer is both i.e. success as well as fail, Fail in 2005 or lower version and success in 2008 or above as you have not specified any version to execute.

These are commonly knows as Range Locks

I guess answer is Yes as it compiled and executed successfully but sql server restricts for nested looping to 32 level so it fails after execution of 32 times.

but only at 32 levels.

1,1 in that case when u have opened a new qurey window and executed that statement and 0,1 in case when u have executed a select statement, which returns nothing...