Points 1 and 2:
Use the wpdb class to read the table. Then use wp_insert_post() to create your page.
Point 3:
WordPress has a Template Hierarchy that allows you to define which theme file to use.
Point 4:
Read the article on Writing a Plugin and add your code in it.
Point 5:
Choose a way to mark which was the last item that was processed, You can for example, save the index of the last article you processed assuming the index increments after each new record. You can even automate the job using wp_cron.
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