Number 3, two points. Choices 4 through 7 will receive one point. If your list is in no particular order, as some are, then each film will receive two points. I think this method works pretty well, looking at the current results. Results are reported weekly, on Monday morning.
Thousands vote each week.
The IMDb then uses a mathematical equation to rank the films as fairly as they can. It's a democratic system, far from perfect, but a good way to gauge popular taste. Recent films, by the nature of the system, have an advantage over older and lesser known ones. Thanks for supporting Film Written Magazine.