This may be the most important part of your project. If you get this correct the rest of the project flows relatively smoothly. If not you will have some difficulty.
The most common error to avoid is,
Do Not Define The Solution, Instead Define The Problem.
If you get this correct you will be well on your way. In the next section you will have to come up with several solutions to the problem which you have defined here.
See your notes to determine how to go about doing research. This section should summarize your research. Any figures(graphs charts drawings etc.) should be numbered (i.e. Fig. 1) and attached to the back of the report. Lengthy text or reference material should be appended. All Figures and Appended information should be referred to in the body of the document.