Use recent journals, books and texts. You will discover that other people have asked the same question that you are asking, and have probably obtained some interesting and relevant results. You can extend, clarify, confirm, verify, refute, etc. Analysis of others' work will provide a knowledge base upon which to base your own research. How many references should you list 5 to 10 good, solid, recent sources should be enough.
Quality is the key.
Your literature review should be minimal and meaningful. Select a research design. It simply refers to the plan and structure of the investigation used to obtain evidence to answer research questions. The design describes the procedures for conducting the study, including when, from whom, and under what conditions the data will be obtained. This is what your design section should do.