"I'm not going to name the festival I'm talking about. Instead I'll refer to it as Film Festival X. Film Festival X has been around for years and has separated countless filmmakers from their money. ... Here's how Film Festival X operates. First, they search around online looking for lesser-known attention-hungry filmmakers. The perfect victims have put a lot of effort into their websites, but maybe not as much into the embedded video clips that appear on their sites. They might brag about hometown screenings or small regional festival screenings, but not screenings at major festivals like Sundance, Slamdance, SXSW, Tribeca, etc."
Skizz handles all these questions and is chock full o' great advice. Be sure to check it out.
Also, this issue of CdC was done as part of the Revenge of Print challenge.