Should I use Lookups? How?

[rewdee]

I have a DTS package with two connections. We are updating one SQL Server Database into a blank database.

There is one table (call Table1) in the previous database that has a field (call Field1) is just straight text. In the new database, Table1, the Field1 is a lookup field from another table (call Table2)

What I need to do is:
1) Get a Distinct list of items in the first database from Table1.
2) Populate the lookup table, Table2, with the list in the blank db.
3) Insert the records from Table1 from the first database into Table1 in the blank database except with Field1 use the lookup value.

I can do the first two steps but how do I populate the Table1 with the lookup value rather than the text. Would I use Lookups? How?

Thanks,
Rewdee