Whenever possible, choose a topic that you feel passionate about. Writing about something you enjoy certainly shows in the final product, making it more likely that you will be successful writing a paper about something you enjoy.
Annotating your research can take quite a bit of time, but needs to be taken one step further in order to add a bit more clarity for the outlining process. Organize your notes by collecting all of your highlighted phrases and ideas into categories based on topic. For example, if you are writing a paper analyzing a famous work of literature, you could organize your research into a list of notes on the characters, a list of references to certain points in the plot, a list of symbols the author presents, et cetera.
The thesis statement is a 1-2 sentence statement at the beginning of your paper that states the main goal or argument of your paper. Although you can alter the wording of your thesis statement for the final draft later, coming up with the main goal of your essay must be done in the beginning. All of your body paragraphs and information will revolve around your thesis, so make sure that you are clear on what your thesis is.
A research paper is an expanded essay that presents your own interpretation or evaluation or argument. When you write an essay, you use everything that you personally know and have thought about a subject. When you write a research paper you build upon what you know about the subject and make a deliberate attempt to find out what experts know. A research paper involves surveying a field of knowledge in order to find the best possible information in that field. And that survey can be orderly and focused, if you know how to approach it. Do not worry--you would not get lost in a sea of sources.