This was a fairly standard affair from Naoi, but there's a good number of 2nd KA here to help out. Interestingly the magazines said Mitsuka would be directing the episode, however this is not the case. Yuuichi Tsuzuki is the director.
In Prima's guide for DBZ: Budokai 2, there's a section at the end detailing the process of how Budokai 1's came to be. In it are two draft sketches and a version of the final illustration without the red filter.