I see in theory the Spratly Islands should go half to Malaysia and half to the Philippines. I also get that China does have a valid claim to some of Paracel (when I view the map in my mind.) The other portion of of Paracel belongs to Vietnam. China won't be satisfied with that as I see them really accumulating as much wealth and resources as possible. I get the image of China being like a hoarder, not really knowing what they need but taking it all in to sort our later. China has long term goals of power in mind, and they are working at it slow and steady (and to some extent under the radar when you consider their ultimate goal).
I also get the UN isn't mediating this yet. They are hoping this resolves itself (in a sense). The UN is also looking at China seriously because when the next currency is issued, they know China wants to facilitate it, and they need a good stable country with a large gold reserve to do it. In a sense I see the UN sitting back and watching how China handles things as if China is on a job interview.
This conflict looks to be drawn out for a long time, and I don't see resolution for 3 or 4 years. Everyone involved wants to hold onto their piece.
I don't see war, but I do see conflict. Ultimately the Vietnamese will surrender these islands, and to say the Vietnamese people are angry is an understatement. I see some kind of agreement being done (Vietnam get a percentage of resources from the islands) to soothe this transaction, but there are many hard feelings over this.