According to a WTO press release (as also mentioned by Jalal Alavi in the comments), the four new Appellate Body Members have been appointed:
The WTO Dispute Settlement Body appointed today (27 November 2007) the following four new members to the seven-member Appellate Body: Ms Lilia R. Bautista of the Philippines and Ms Jennifer Hillman of the United States for four years commencing on 11 December 2007; and Mr Shotaro Oshima of Japan and Ms Yuejiao Zhang of China for four years commencing on 1 June 2008.
The WTO, of course, has nothing to say about how the situation was resolved. Here are brief articles on the matter by AFP and Reuters.
MORE:
From something called "Taiwan Headlines":
Taiwan will stop blocking the appointment of a Chinese lawyer as a judge on the World Trade Organization (WTO)'s Appellate Body, Taiwan's representative to the WTO Lin Yi-fu confirmed Tuesday.
Lin told the Central News Agency (CNA) that an agreement has been achieved in the latest round of negotiations held between Taiwan delegates and high-ranking WTO officials.
...
During the interview, Lin did not reveal further details of the agreement, but assured that the DSB meeting "will proceed smoothly."
...Lin, for his part, also told the CNA that Taiwan delegates have never directly spoke to their Chinese counterparts over the dispute, and that Gosper has never mentioned whether he has ever talked to the Chinese delegates.
Jacob Katz Cogan of the International Law Reporter notes:
It's unclear whether, in exchange for withdrawing its opposition, Taiwan has received some assurances from other WTO members regarding, for example, future appointments of Taiwanese nationals to WTO committees.
Here is the first report I've seen from Xinhua on the issue. No mention of the Taiwanese objections.