I do not know how to format equations on here, so here is a picture of my attempt: 
Why is it that when trying to find the coefficients about the indicial root r=0 leads to undefined coefficients? The textbook claims both roots r = 1 and 0 have the same series solution? Unfortunately the textbook does not show the derivation.
So you get the first equations $$ 0=r(r-1)c_0\\ -c_0=(r+1)rc_1\\ -c_1=(r+2)(r+1)c_2 $$ etc. In the case $r=0$ the second equation tells you that $c_0=0$ and $c_1$ is arbitrary and determines the other coefficients, $$ y_0(x)=c_1(x-\frac12x^2\pm\dots). $$ In the case $r=1$ you get a solution based on $c_0$, but now with additional factor $x=x^r$ so that $$ y_1(x)=c_0x(1-\frac12x+\frac1{12}x^2\mp\dots) $$ which in the end is the same solution. You get the second basis solution by order reduction, set $y_2(x)=u(x)y_0(x)$ where $c_1=1$ with the equation $$ 0=x(u''y_0+2u'y_0')\implies u'(x)=y_0(x)^{-2}=x^{-2}\left(1 + x + \frac{7}{12}x^2 + \frac{19}{72}x^3 + \frac{149}{1440}x^4 + \dots\right) \\ \implies u(x)=-\frac1x+\ln(x)+\frac{7}{12}x + \frac{19}{144}x^2 + \frac{149}{4320}x^3 + \dots $$ which gives the solution that is singular in $x=0$.