I think the literacy rules are inane. Every character should start out illiterate (even in thier native language.) Everyone can Speak a native language and common. Thats it. Want to read or learn more languages, thats what the intelligence bonus is for. Here it is straightened out:
Free language: Speak Native, Speak Common
Speak Language costs 1 skill point
Literacy in language costs 1 skill point
Int bonus gives you a language bonus = to that bonus.
So if its +2 you have 2 virtual skill points (language only) to mess with.
Negatives = 0 for this.
But then again you don't get the wizard that knows all sorts of languages this way. But then again everyone else does know these languages.
Still going with the old way, some points:
I think the lists should be rewritten as suggestions basedon stereotype. An elf might take blah blah blah...
It works better if you roll your stats in order. When you do that you don't get a party thats a walking feast for intellect devouerers.