Here are the entries not allowed:
Entries not allowed:
1. Non-stories: lists, bloopers, polls, previews, challenges, author notes, and etc.
2. One or two liners.
3. MST: comments inserted in between the flow of a copied story.
4. Stories with non-historical and non-fictional characters: actors, musicians, and etc.
5. Any form of interactive entry: choose your adventure, second person/you based, Q&As, and etc.
6. Chat/script format and keyboard dialogue based entries.
So no, script format is not allowed there. I used to know the reason. I think one of them might have to do with trying to lessen the amount of entries put into the site. At the time, I think their server wasn't as big as it may be now and they had to make some new rules and come up with new methods (as well as take away some abilities) to lessen entries. For instance, you used to be able to put pictures in the story entries, but I don't think you can anymore.
Another reason they may have banned script format is for quality. I know not everyone would agree with me, but I feel that novel-style stories have more effort put into them. Script format tends to be shorter, mostly dialogue, and less descriptive (the ones I've seen anyway) while novel-style are more enjoyable for me. I don't think there's a lot of authors out there writing original stories and selling them in script format; it's usually novel-format. Script format is usually used for movies, skits, TV shows, etc.
It may be possible that the owner of the site banned script format for this reason. Perhaps there were complaints from users about script format. Maybe they didn't like script format themselves for some reason. Maybe there were so many script format stories being submitted (the way I see it, it's easier writing up a script story and getting it put into the site than it is for novel-style), or some other reason.
If you want to post up stories on FF.Net, you'll have to translate your stories into novel-style, which really isn't that hard. Or if you don't want to, try DA. I don't think they have a rule against it.
Personally I'm not fond of script formats because I regard them as less descriptive. I've seen many of them in the past and they have always been less descriptive than novel-style.