Hi
I am glad you have asked this question. I think there are some relevant threads in one of the technical sections of RC, but they tend to relate to the technical side of putting stuff together rather than the process of writing (Mods please note - how about a writing up section please?)
I expect there will be as many ways of doing it as there are writers! None of us is wrong. For myself, I have decided not to include copies of all the docs for a couple of reasons. First, a lot of them are on paper and would have to be scanned, which would take ages. Harlem has scanned all his as he received them, but I started all this years ago and have so much on paper. Second, I am not sure that it is the docs that people want to see. Third, they are all documented quite well in FindMyPast, with references to their whereabouts, so if someone really wants that sort of detail, they can find it.
So - what does go in, then? I have written about a third of what I wanted to write and have I think three ways into it. The problem is that it can read 'x married y and they had three children. The eldest, z, was an aglab in 1861 and I cannot find him thereafter.' - not very interesting, so I look for other ways in. First, there are family stories. For a number of folks I have been able to confirm or refute family stories, and these titbits make good reading. So I have written a chapter that starts with the family story and where it came from, then my researching it, and then what I think is the truth of the matter. Second, like Kaybron says, there are contexts. I found a large family, many of whom relocated to the US. At the time the Ellis Island website was free, and I found many of them there, together with photos of Ellis Island. I was able to google the town where they settled and found an account of eceonomic development there, why it was a boom town etc, so I set their stories into that context. Third, we are restricted by what is available. For example, I have the World War One records and war diaries for three or four of my grandfather's generation and have been able to construct stories about them, describe what I think happened, maps of Flanders etc. For their siblings I have very little info, so the stories are unbalanced, but that's the way of things.
I'd be interested to know how others go about all this.
Oh - and it all takes a lot of time - Good Luck!
Harlemswife