Hi Livvy,
I just stumbled upon this thread by accident, but I am actually a recipient of the Chancellor's Scholarship for PhD students so I might be able to give you a bit of advice. For my application, I had to include a well-referenced research proposal, and I spent an appreciable amount of time working on that (I think it was about 30 references and about 10 pages long). My 'personal statement' section was more intended to be a project summary, while looking at your application, yours seems to be more general. This could either be a pro or a con, depending how much you like selling yourself on paper! If you DO have an idea of what your final project/specific area of research is going to be in your Master's course, I would absolutely try to work that in there if I was you. Just try to think of it in these terms - if the University is going to potentially give you money, try to convince them that your work is going to somehow give them a return on their investment. We're working in radically different subjects (I'm chemistry) so I'm not sure I can get much more specific, but try to come up with a problem that is appealing/interesting and then address how you personally are going to investigate/solve it. That's basically what I did, and obviously it worked out. Oh, and if there's any way that your work could potentially result in any kind of publication, mention that - this is the kind of stuff that makes the University look better, and in turn makes you look more appealing as a candidate. Additionally, my scholarship only had 10 recipients, so if yours has 100, I'd say you have a pretty good chance of getting it (not to get your hopes up too much, I have no idea how many people apply). Lastly, don't be afraid to ask your future professor/advisor for help; mine helped me a lot. I hope I didn't just confuse you even more... Good luck!