To READ a screenplay, you should know these basics:

EXT. means Exterior.  INT. means Interior. 
This designates
where the scene takes place.
(Indoors or outdoors)
POV means Point Of View. 
CLOSER VIEW means the camera shot is very close on the subject; WIDER VIEW is a wide shot etc. 
(O.S.) means the person is Off Screen. 
(V.O.) means Voice Over. 
B.g. is background and f.g. is foreground. 
M.O.S. means without sound. 
AD LIB means the charactor's are talking audibly,
but their lines are random and not scripted. 
Never read a screenplay?
Excerpt from:
(Scene Heading... tells where and when scene happens)

INT. DENVER AIRPORT - MURAL - CLOSE ON

a German boy beating swords into plowshares.  It's ruined. 

(Action Line... describes the action within the scene)

A CLOSER VIEW shows a handwritten letter from a Jewish boy who died during the holocaust of World War II.

                 BOY'S VOICE (O.S.)
            "I was once a little child who
            longed for other worlds.  But
            I am no more a child for I have
            known fear, I have learned to
            hate.  How tragic, then, is youth,
            which lives with enemies, with
            gallows ropes.  Yet, I still believe
            I only sleep today, that I'll wake up.
            A child again, and start to laugh
            and play."
                        
(Dialogue)
                     

                                           DISSOLVE TO:
                                     
(Scene transitions)

EXT. ISRAEL - GREEN MEADOW - DAY

Kids of all colors are playing together.  Katy's little brother is SEEN playing with Anne Frank.  Katy's mother and father are watching the kids play in the b.g.  Davie Jr. is seen playing with two other kids, fraternal twins.

Subtitle: "The Millennial Reign of Peace.  In the year 2525."

A lion and a lamb play together in the f.g.  Other children are beating swords into plowshares.  We NOTICE they each have the Name of God written upon their foreheads.

                 NARRATOR (V.O.)
            Instruments of death are a distant
            memory.  No one learns war anymore.
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