Non-Deterministic FSA to Deterministic FSA, Two initial states
The powerset construction converts an NFA to a DFA. You then "optimize" the result by removing states which cannot be reachable from the start state. When the NFA has multiple starting states, you do exactly the same thing. The starting state of the new DFA is the state corresponding to the set of starting states in the NFA (compare that to the usual case, in which the starting state of the DFA is the signleton consisting of the starting state of the NFA).

Given a DFA, you can compute the set of reachable states iteratively: the starting state is reachable; any state which it points to is reachable; any state which these point to is reachable; and so on. (Technically, this is known as BFS. There are also other algorithms, such as DFS.)