Some papers to consider.
Inferences from the dark sky: Olbers' paradox revisited
http://arxiv.org/abs/astro-ph/0007428
The classical formulation of "Olbers' Paradox" consists in looking for an explanation of the fact that the sky at night is dark. We use the experimental datum of the nocturnal darkness in order to put constraints on a Newtonian cosmological model. We infer then that the Universe, in such a model, should have had an origin at a finite time in the past.
John Baes gives a brief, but, illuminating discussion here
http://math.ucr.edu/home/baez/physics/Relativity/GR/olbers.html
See also
http://cmb.physics.wisc.edu/tutorial/olbers.html
http://hyperphysics.phy-astr.gsu.edu/Hbase/Astro/olbers.html
http://en.wikipedia.org/wiki/Olbers'_paradox
The most important point, IMO, if infinitely old and populated, the universe should be in thermal equilibrium. This is not observed as noted here:
Molecular Hydrogen in a Damped Lyman-alpha System at z_abs=4.224
http://www.arxiv.org/abs/astro-ph/0602212
". . . The high excitation of neutral carbon in one of the components can be explained if the temperature of the Cosmic Microwave Background Radiation has the value expected at the absorber redshift, T=14.2 K. "
- and -
http://babbage.sissa.it/abs/astro-ph/0012222
The microwave background temperature at the redshift of 2.33771
Authors: R. Srianand (IUCAA, Pune), Patrick Petitjean (IAP, Paris), Cedric Ledoux (ESO, Munich)
Comments: 20 pages, 5 figures, accepted for publication in Nature, Press embargo until 1900 hrs London time (GMT) on 20 Dec 2000
The Cosmic Microwave Background radiation is a fundamental prediction of Hot Big Bang cosmology. The temperature of its black-body spectrum has been measured at the present time, $T_{\rm CMBR,0}$ = 2.726$\pm$ 0.010 K, and is predicted to have been higher in the past. At earlier time, the temperature can be measured, in principle, using the excitation of atomic fine structure levels by the radiation field. All previous measurements however give only upper limits as they assume that no other significant source of excitation is present. Here we report the detection of absorption from the first {\sl and} second fine-structure levels of neutral carbon atoms in an isolated remote cloud at a redshift of 2.33771. In addition, the unusual detection of molecular hydrogen in several rotational levels and the presence of ionized carbon in its excited fine structure level make the absorption system unique to constrain, directly from observation, the different excitation processes at play. It is shown for the first time that the cosmic radiation was warmer in the past. We find 6.0 < T_{\rm CMBR} < 14 K at z = 2.33771 when 9.1 K is expected in the Hot Big Bang cosmology.