So I will try to answer those questions for you. The full text of Proposition 77 is located
http://64.233.187.104/search?q=cache:jtpmYyyiZFoJ:ag.ca.gov/initiatives/pdf/sa2004rf0037_amdt_1_ns.pdf+Prop.+77+text&hl=en]
and I do hope you decide to read it since it spells the exact changes and the process out in great detail.
That's a PDF file so I can't cut and past it but in order to qualify (section 1.2A) the judge must never have held a partisan political office, worked for a political party, they can't have switched parties since becoming a judge, the judge must be retired and no longer sitting on the bench, and the 24 seat panel must have no more or less then 12 representatives from the two biggest political parties in the state. The judges themselves are decided by drawing lots between themselves. The judges themselves must swear in writing to not run for an elected office for 5 years after taking part in the panel (section 1.2b).
From this pool of 24 judges the state Judicial council, along with majority and minority leaders of both the state senate and the state assembly will unanimously select three judges, called special masters, to preside over the redistricting; all three judges may not be from the same political party. If those people cannot settle upon three judges with in the required time period then three judges will be drawing from the pool of 24 by drawing lots (section 1.2D).
That's how the "special Masters" get decided upon but what are the criteria for creating districts? Simple, from section 2. All districts must have equal population or nearly equal with in 1% of each other, all districts must be contiguous (no more of these leap frog districts), districts must conform to city/county boundaries where ever possible (the order of importance is 1) create the most whole counties possible 2) create the fewest county fragments possible 3) create the most whole cities possible 4)create as few city fragments as possible), districts should be as geographically compact as possible (no more snake like districts like the one in western Santa Barbara and southern SLO counties), US census blocks must stay as united as possible. In addition, no consideration may be given to how the redistricting will effect political parties, past voting records of citizens may not be used while drawing up districts and party affiliation of voters may not be considered.
I can understand the fears some people have about Republicans potentially gerrymandering districts but if anything this will make it much harder for parties to gerrymander things. When in doubt I find reading the original wording of the proposition and its exact phrasing helps and I hope others do read it before making up their minds.