"Draft one" occurs when I have written a complete draft of the story without any missing words, lines, or scenes. "Draft zero" is a more-or-less complete story but with bits missing, clearly marked so a reader knows what would go there ("name of cheese", "they go to the cave", etc). "Draft two" occurs when reader/s (usually Jon) looks over draft one and points out all the crap that needs fixing. I am probably the only person to use this terminology.