I judge them like that. Grammar, spelling, and formatting are all very important parts of writing. And they're simple, especially formatting. There is no excuse but laziness for having utterly unreadable garbage. Laziness scores 2 at the most. I've given a couple 2s out because there have been a few stories which are actually pretty good once you get past the block of misspelled text and abused/neglected commas/capitals/periods/etc. Most of the time, they just suck, though.
And since y'all are doing it, my test entry, luls,
Glass City.
Just don't tell me the pacing is crap or that it looks rushed; I know the first already, and I'm also the one who rushed it.