Recommended resources:
Literate Modelling -- Capturing Business Knowledge with the UML / Jim Arlow + Wolfgang Emmerich + John Quinn, University College London; 11pp.
Other sources:
Literate Programming / DonaldKnuth (1992) ISBN 0937073806 . Errata can be found at Knuth's web site at http://www-cs-faculty.stanford.edu/~knuth/lp.html .
Literate Programming / Donald E Knuth, The Computer Journal, 27(2):97-111, 1984.
Huge (aprox 220 records) bibtex bibliography at http://www.math.utah.edu/pub/tex/bib/litprog.html by Nelson H F Beebe, http://www.math.utah.edu/~beebe/ .
Google, obviously. :o)
Literate Programming in Forth -- http://dec.bournemouth.ac.uk/staff/pknaggs/papers/literate.html
Literate Programming http://www.literateprogramming.com/
Literate Programming -- Propaganda and Tools http://vasc.ri.cmu.edu/old_help/Programming/Literate/literate.html
Literate Programming Library http://www.desy.de/user/projects/LitProg.html