I just entered today's Daily Freebie without experiencing any problems, and did not get the "read the rules" message you received.
Here are some things that may help:
1) Clear your computer's cache
2) Sign out of your Seventeen account
3) Click this link
http://www.seventeen.com/fun/freebies/
Click the "Enter Now" button that's to the right of the picture of the Daily Freebie.
On the next page, scroll down until you see the picture of the magazine cover, and the section to the right of it that reads: "No purchase is necessary to enter". Click on the highlighted words "click here" and that will bring you directly to the entry form.
4) Fill out the form with today's code (smooth) and click the submit button.
Hope this helps. If not, please edit your question to let us know what happened.
Good luck!