The Data Loader configuration file, IRMDataLoader.exe.config, lets you control the behavior of Data Loader when it encounters an error. If, during the processing of a file part, an error is detected, the Data Loader doesn't process any of the remaining child file part elements in the XML file.

To set Data Loader to continue processing regardless of errors, set the ContinueRecordUpdateOnUpdateError parameter to true.

This setting affects only file parts, and it only affects whether child file parts should be attempted if there's an error with the parent. Further processing of non-children is always attempted.