I have to perform re-projection of my 3D points (I already have data from Bundler).
I am using Camera Calibration toolbox in MATLAB to get the intrinsic camera paramete
The camera calibration toolbox extract grid points from the checker board images and uses it for finding calibration parameters.
The pixel errors are mean re-projection error for extracted grid points, i.e. the actual pixel location and the one by using calculated K matrix. So these numbers are mostly within 1 (1 pixel error) although your numbers are quite. The error in focal length is variance of calculated focal length.
You need only 3 or 4 images to find calibration of a camera (I forget the actual number). If you provide multiple images, it will compute K for all the combination of 3-4 images and compute a K. The errors are the variance of all these computed K.
Your numbers are quite high (it should be within 3-4 pixels compared to your 22-23 pixels). The reason is bad images for calibration and wrong initial estimate of grid points (this you do manually by selecting 4 corners in image). Also usually f_x and f_y are same in modern cameras and you should take mean of both (f_x + f_y)/2.
Regarding your principle point, it seems your camera resolution in 1920 x 1600 and you should use [980 800] instead of the one given by toolbox. Usually the ccd is placed carefully now-days and you have your principle point exactly at the center.