Here is a tutorial on RefWorks that teach you how to set up an annotated bibilography. After several hours of trial and error, I learned how to input and generate an annotated bibliography. Once you figure it out it is quite handy.
The part that makes this all worthwhile is the fact that you can insert your citations right into your word processing document with the click of a button and generate a bib at the same time. Pretty slick but will take a few minutes to get the hang of it.
First download Write-n-cite and install on your computer.
This tutorial is very easy to watch and learn. Turn on your sound.
http://www.refworks.com/tutorial/Creating_An_Output_Style.htm
Use the pull down menu under HELP on your RefWorks page for other great tutorials.