Rule #24 on your rules -
!!!NEW!!! NO MORE SUBDOMAINS!!! Sorry, too many cheaters have been redirecting subdomains on me or finding free hosts I just haven't heard of before, so I no longer allow any submissions on subdomains
I still see many submitting on subdomains and I don't see any problems reported in this thread (I only skimmed through though). Is this rule for real?

If I have a freesite on a subdomain, should I just avoid submitting?