The bibliography can be done by hand, in which case you will have to add the citations yourself, or with the help of BibFrame. BibFrame will try to generate bibliographies for you, but it does not work perfectly. Once you are finished, you will want to edit the bibliography to find any mistakes that BibFrame made.
To use BibFrame, you will first need to create a .bib file with entries in it for all of the sources you would like to cite. For information on how to create this file, consult the stock answer entitled "How to make BIBLIOGRAPHIES in Latex" under the Latex topic.
Once you have a .bib file, you can create the citations by typing the "key" for the bilbliographry entry where you would like it to be cited. Then, highlight the key and hit C-r b m. After you have all the citations in you document, you need to tell frame where to look for the .bib file. You can do this by going to the menu
Special --> Variable... --> Create Variable...Type in the name bf-reffiles in the Name field. Then type in the full path name to the .bib file in the Definition field, but do not type in the .bib extension on the filename. If you wish to include mulitple files, seperate them with commas, but no spaces. Finally, click on Add, then click Done and click Done in the Varaiable dialog box.
For example, if you had a document named proposal.doc and a .bib file named proposal.bib in your Thesis directory, you would put
/mit/username/Thesis/proposalin your bf-reffiles variable. Once you have done this, you are ready to create your bibliography. Create a new paragraph and make a title for your Bibliography (most templates should have a Bibliography paragraph style to use for this purpose) Hit return and type C-r b b to create the bibliiography. This will execute a keyboard macro that will run for a minute or so. After it is done, you can insert the bibliography into your document by clicking the cursor where you want it to appear and typing C-r b i. You should see all the entries in your document.