Hi there eternity
welcome to the Computer Hope Forums. I hope you become a regular here and share your information with others.
Coming to your problem...
that was a tough one (mostly logical errors from me though

).
First I suggest reading:
1. how to use the for command.
for /?
should suffice. OR go
here. (this is the same thing, but better look

)
2. about delayed expansion
Now,
I came up with the following code. But to give you a background:
testtxt.txt contains these lines:
-txt1.txt
-txt2.txt
-txt3.txt
and the current folder has these files:
-test.bat
-texttxt.txt
-txt1.txt
-txt2.txt
-txt3.txt
Now, test.bat has this code:
@ECHO off
SETLOCAL EnableDelayedExpansion
FOR /F %%a IN (testtxt.txt) DO (
SET name=%%~na
MD !name!
COPY %%~nxa !name!
)
You may use the XCOPY command instead of COPY, it has more functionality. MOVE is unstable or something, but it is not usually recommended in these forums

.
Of course, adapt the code as you need it exactly.
Hope all this helped
Yours,
Two-Eyes %