Hi,
The axy.fits file contains all sources detected in the image; the corr.fits file contains only "correspondences" -- likely matches between stars in the image and reference stars; this will be a subset of all the stars detected in the image.
By lowest magnitude, do you mean faintest, or brightest? (Gotta love the magnitude system?) Assuming you mean the faintest: our star detector is designed for robustness and simplicity rather than accurate photometry. For example, an optimal star detector would apply a matched filter -- a model of the PSF -- to detect stars. Instead, we use a fixed Gaussian (width sigma = 1 pixel), so this is a "mismatched filter" -- it's not as sensitive as possible. Also, by default we use a rather high detection threshold of 8 sigma, vs a more typical 5 or 6. Finally, the fluxes we report are not optimized -- we're just reading off the nearest-pixel approximate flux *if* our PSF model were correct (we're not trying very hard; it isn't). Very much caveat emptor, in other words!
cheer,
--dustin