From what I understand re-writing is perfectly acceptable. You're making changes and typing anew. For example, it's frowned upon to simply cut/paste 30,000 old words, add 20,000 to it and call it winning the challenge. Adding 50,000 to the 30,000 would be winning. Then again the only person who would know the words are old would be the writer, so it's up to the person to be honest to themselves. I see the challenge as a great way to make progress with an idea (even if it doesn't reach the goal) and to have a sense of community while doing it. If you have the time, it's a productive way to release some plot bunnies.
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For example, it's frowned upon to simply cut/paste 30,000 old words, add 20,000 to it and call it winning the challenge. Adding 50,000 to the 30,000 would be winning. Then again the only person who would know the words are old would be the writer, so it's up to the person to be honest to themselves.
I see the challenge as a great way to make progress with an idea (even if it doesn't reach the goal) and to have a sense of community while doing it. If you have the time, it's a productive way to release some plot bunnies.