You don't need to nominate characters to write. The whole process seems confusing but when you actually go through it and do it it makes sense. If you have a AO3 account you can nominate characters/fandoms whether or not you wind up joining the exchange. You don't need to have an lj at all--some people use lj for certain things about the exchange but you don't have to have one.
But if you have any specific questions I (and probably other people too) would be glad to answer them. I've only been doing it a few years so I well remember how confusing it seemed before I went through it.
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timeasmymeasure
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Date: 2014-09-24 08:37 pm (UTC)This is the link to where you nominate--there's a button on the side that says nominate to start entering things:
http://archiveofourown.org/tag_sets/479
They have a faq that I think is pretty good here:
http://archiveofourown.org/collections/yuletide2014/profile#faq
One of the things on it covers signing up for a challenge on AO3, Yuletide included:
http://archiveofourown.org/admin_posts/40
But if you have any specific questions I (and probably other people too) would be glad to answer them. I've only been doing it a few years so I well remember how confusing it seemed before I went through it.