We played the game based on a badly remembered skim through the rules, and that version has stuck. We also call it 1001 blank cards because we remembered the title incorrectly! Personally I think it's better than the original game, but I'm sure many would disagree.
To set up, each player is given a pen and something to lean on. A deck is created containing about 50-100 cards. Most of the cards should already be written, and some should be blank ones. Before the first game this will require the creation of a load of new cards, but we usually each create new cards before a game anyway.
The cards are shuffled, each player is dealt five, and then the rest are placed in a draw pile. Each player starts with a score of zero and the player with the highest score at the end is the winner.
A players turn consists of playing a card from their hand into a discard pile, following the rule, and then replacing it with a card from the deck. If a player takes (or is dealt) a blank card then they must create a new card, and place it at the bottom of the draw deck. They may then take a replacement card from the deck.
Each card must have three parts - a title, a picture and a rule. There are no restrictions on the rules on the card, but we have a gentlemanly agreement not to obviously benefit ourselves with the rules - e.g. we tend not to create cards that say "Jack gets a million points". The other thing to take into account is replay-ability, as any of the cards could end up being used in future games. However, it is a source of constant amusement to be playing with cards that no longer make sense - e.g. "Score 10 points if you can guess how many baubles are on the Christmas tree".
When the draw deck is exhausted, play continues, but players no longer pick up new cards. When a player has no cards that will go, and the draw deck is exhausted, then the game is over.
The major benefit of our version of the rules, compared with other versions I have seen, is that there is less incentive to create a good or bad card. Whenever you create a card you do not know who will end up playing it. The primary aim is to get the most points, but I think everyone agrees that the real aim is to create the most noteworthy cards!