You're misusing the regular espressions. Here is your read/write loop corrected to what I think you're looking for,

while(<>){
    print if m/^-/;
    if (m/^(\w+\.txt)/){
        open (local(*FILE), "> $1") or die $!;
        print FILE "Success";
        close FILE or die $!;
    }
}
[download]

That doesn't really split your file, it just prints "Success" over each .txt file mentioned in the one you read. To actually split, you need to tell perl how to spot the end of the file, while printing $_ to *FILE.

Update: Ah, in that case I'll explain a bit more. The parenthesis in m/^(\w+\.txt)/ captures the matched text (here a number of 'word' characters followed by '.txt') and makes it available in the $1 variable. So 'foo.txt' at the start of the line matches, and $1 will contain that file name.

I assumed a little different file format and intent than Plankton did. You should adjust what we say to fit your needs. Added some error checking.