I don't know, the forum layout probably isn't the problem. If people were interested in fanfics, they'd probably read them no matter where they were posted. The fact that they aren't read probably indicates that people aren't interested, for whatever reason.
I have to disagree. A FF8 Fan Fic was posted in the FF8 forums and got a ton of replys, 20-30, and most Fics in the Writer's Corner doesn't even hit 10. It was then moved to the Writer's Corner where traffic has since died down. I think if it was orginally there, it wouldn't have gotten as many replys as it did, not even close.

I think part of the problem, though, is member awareness. I orginally joined for the FF8 fora, but have now branched out and visit many more. However, a lot of members join for a fora and only visit that fora. I'm worried about the Signature problem, because it's not posted in the Announcements and I know many members who don't even know there is a General Chat :rolleyes2
For the same token, many probably are unaware of the Writer's Corner's exsistance.

As far as the spoilers b/c of what Fantasy the fic belongs to, that's annoying but could be easily fixed if we asked people to post in the title (A FF# Fic), or something to that effect.