Each League has four teams advance to the playoffs. These teams are the three division winners and a fourth team that has the best overall record of the teams that did not win their division. This team is called the 'wildcard' team. Usually in the first round of the playoffs, the wildcard team plays the division winner with the best overall record and the other two division winner play each other. These series are called Divisional Series and a best of 5; the first team to win 3 games wins the series. The winner of those series play each other in another series, called the Championship Series, with the winner going to the World Series. The Championship Series is a best 7 (first team to win 4 games wins the series) and the World Series is also a best of 7.
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[As of 1-Jun-2009:]
NCAA Baseball 2009 Division 1 Baseball Championship Handbook
http://web1.ncaa.org/web_files/champ_handbooks/baseball/2009/1_baseball.pdf
Page 18:
Determination of Home Team
For first-round games during championship competition, the highest-seeded team
shall be designated as the home team. In subsequent games, the home team shall be
determined according to a formula applied by the games committee.
In determining which of two teams in any game will be the home team, the games
committee or the NCAA game representative shall designate the home team using the
following guidelines:
1. The institution that has been the home team the fewer number of times in that
particular tournament.
2. If the two teams are equal in this respect but unequal in the number of times
they were the visitor, then the team that has been the visitor more often will be
designated the home team.
3. If the two teams are equal in the number of times that they have been home and
visitor, the games committee or the NCAA game representative shall observe the
following procedures in the order stated:
a. If the two teams have met previously in that particular tournament, the
visitor in the previous game shall be the home team in the game in question
(Exception: In a two-team tournament where both teams have been the home
team twice, the fifth game will be determined by a coin flip);
b. The team that was visitor in its preceding game shall be the home team, unless
both teams were visitors in their preceding games; or
c. If the above procedures do not resolve the matter, the home team shall be
determined by coin flip. The higher seeded team can determine whether they
will call the coin toss, or defer the call to their opponent.
The location of the World Series is determined according to the two teams that they are playing and whichever league won the All Star Game in July is the league that will be given the home field advantage for the World Series and the World Series is set up so that Games 1, 2, 6 and 7 will be at the team with the home field advantage's stadium and Games 3, 4 and 5 will be at the stadium of the team that doesn't have the home field advantage.
By the winner of the All Stars Game. Whoever wins the All Stars Game has 4 home games to 3 (2-3-2 format) in the next World Series.
Currently, whatever league wins the All-Star game will have Home-Field advantage in the World Series.
Well obviously it is determined by which two teams are in the World Series. Home Field Advantage is given to the team from whichever league won the All-Star game.