To tell you the truth, I always make outlines last. Even when professors have required an outline first, I simply wrote the paper and then made an outline based on the completed paper.
The reason for this is because a paper is ALCHEMY involving several articles (i.e. the sources you cite) combined with your own thoughtful, educated reflection. That means you cannot plan the paper until after you have done the research.
Read an article about capital punishment, and write 2 paragraphs about it. Then, repeat that process for 5 or 10 more articles. You will end up with several pages. Reread the pages, and compare the to one another, scrutinizing them, and coming up with conclusions. When you have worked with all this material, decide what is the most important insight you got from the whole experience; make that your thesis statement, and the beginning! Then, reflect on that same statement at the end, in the conclusion!
Suddenly, you have a whole paper. Make an outline based on the paper.
It is tough, because you have to write the whole paper (or at least a draft) before writing the outline, but it is a heck of a lot easier than trying to make an outline for a paper that does not yet exist.
The idea is to have your research change your thinking, so why plan the end result before doing the research?
As for citations, place them after every piece of info that you take from the sources. What citation style are you using? (MLA, APA, Chicago, Harvard, etc)