Something like this should do the trick:
cat file | while read line; do touch $line, echo "filename=$line" > $line; done < file
it will open the file, read it line by line, and for each line it will create a file with the name being the content of the line and then write a line to that file with the contents of the echoecho
command (being filename=).
caveat: I haven't actually tested it.