The bookmarking system is something that I was going to add to the hack but have decided not to (not for this one anyway). The reason it's still in the template is because I forgot to remove it.
The idea what that users could bookmark a chapter within one of the stories to return to it at a later date.
Now before I go on, I need to make you aware of three diffrent terms used within this script, I need to do this because you question is very confusing, you are using the wrong terms.
Chapter - a chapter is a post within a story, just like chapters in the book, the only diffrence here is that at the end of each chapter you will be presented with two paths to follow, each of which will lead to another chapter.
Story - all of the chapters are split up into stories, the story provides you with all the information you need to start reading such as some background info and the char's name.
Genre - this is like a category into which you place stories.
However, what you have said is correct - at the moment only admins can add stories using the admin CP (soon, this will be mods as well), but once a story has been added, users can then come along and add chapters.
I am however going to be working on a story suggestion feature where users can fill in a form similar to the one you fill-in when adding a story. This info will be placed into the database, but not listed until it's authorised by an admin or a mod (who will receive an email stating that a story has been suggested).
It will be included in the next release, maybe tomorrow....
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