What is not working exactly? I've noted a couple of areas that may be giving trouble

....
### my $newdir= 'c:\redone';
my $newdir= 'c:/redone'; 
my $extension= ".txt";
## I would be tempted to take the preceeding 2 statements out of the l
+oop

my $target = "$newdir/$line";
open( FINAL, ">$target" ) or die "Can't open $target:$!";

#output database results
### while (@row=$sth->fetchrow_array) {
while (@row=$sth->fetchrow_array()) {
...
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