2) A member belonging to the nearly unknown society of persons able to string a sentence together without the addition of such terms including ur, hott, omg, lolz, wft, and so forth...
Non-Literate: omg did u see tha mofo slung that fag in his fuckin ballz??
(Grammar error fixed by CPU Killer)
Able to read and write.
A good roleplayer. Specifically, a literate roleplayer does not use chatspeak, spells word correctly, and has proper usage and grammar. Literates are less likely to be desperates or n00bs and generally roleplays well.
If you see a thread with "LITERATE ROLEPLAY/LITERATES ONLY" in the subject line, it means they only accept people who have good grammar.
2. The difference between a literate roleplayer and an advanced roleplayer is that being advanced specifically states that you are good at writing (i.e. descriptions, characters) but literate just means you have good grammar, although they're often used interchangeably.
They detest things such as chatspeak, which is often called "shorthand" by illiterates. Some literates can deal with said chatspeak, while others cannot.