well, there's lots of ways to approach what you want to do.
I'd start with trying to get the text into two columns, then worry about multiple pages.
first write the HTML to put the text into two columns and test it with dummy text so you know the layout is correct. then change it so instead of drawing dummy text, it draws $col1 in column 1 and $col2 in the other column.
then you want to write a PHP script that fills $col1 and $col2.
I'd suggest taking your source text (you're reading it from a text file, did you say?), using the explode() command on spaces, count the number of words you get as a result (use sizeof()) then use array_split and implode() to assemble $col1 and $col2.
that should get you started in the right direction. If this is over your head, go back through my message and try writing out a little flowchart of what you're going to code. also be sure to look at each of the php commands I mentioned so you understand what they do.
best,
Eric