For a Literature Review Project Read original research and organize it in a way that focuses on the issues and reports on the experimental questions at hand. You should not be as terse as a research article. I like to get some details and evaluation of research that you are reporting on. If your proposal is to try a new method, then the proposal should have a detailed procedure or design section. If your proposal is joining two areas together that were discussed in the literature review, less details to the methodology might be needed and more details on how the hypotheses came from the integration and relate to the variables being manipulated in the proposed experiment.
References vary in strength and relatedness to the paper.
Quantity matters in that it helps not read only a few papers, but citing 10 papers just to have them won't work well either. It may be that only three or four papers are central to your paper, but you might cite others that help to add depth or critical evaluation to the paper.