Special Status Flag Enabling?

Special Status Flag Enabling?
00068e80: 27bdffe0 addiu r29,r29,0xffe0
00068e84: afb10014 sw r17,0x0014(r29)
00068e88: 00808821 addu r17,r4,r0		r17 = Counter2
00068e8c: afb00010 sw r16,0x0010(r29)
00068e90: 00a08021 addu r16,r5,r0		r16 = 1 = status present, 0 = not present?
00068e94: afb20018 sw r18,0x0018(r29)
00068e98: 00c09021 addu r18,r6,r0		r18 = Unit's ID
00068e9c: afbf001c sw r31,0x001c(r29)
00068ea0: 0c01e9c9 jal 0x0007a724		Find Misc Unit Pointer (r4 = Unit)?
00068ea4: 3244ffff andi r4,r18,0xffff		r4 = Unit's ID
00068ea8: 00402821 addu r5,r2,r0		r5 = Misc Unit Data Pointer?
00068eac: 14a00003 bne r5,r0,0x 00068ebc		Branch if Pointer exists
00068eb0: 34020001 ori r2,r0,0x0001		r2 = 1
00068eb4: 0801a437 j 0x000690dc
00068eb8: 00001021 addu r2,r0,r0		r2 = 0
00068ebc: 1202003f beq r16,r2,0x 00068fbc	Branch if status is present?
00068ec0: 2a020002 slti r2,r16,0x0002
00068ec4: 10400084 beq r2,r0,0x000690d8		Branch if value >= 2 (error check)
00068ec8: 00000000 nop
00068ecc: 16000083 bne r16,r0,0x000690dc	Branch if value is negative (error check)
00068ed0: 34020001 ori r2,r0,0x0001		r2 = 1