search and replace by bash

Hello everyone!

I have a file: text.txt

and also a list of replacement: replace.txt (tabbed)

is	isn\'t
Mac	Windows
will	won\'t
\.\n	\!  			<--- ! plus 2 spaces

I want a script which will change text.txt as

I made a script:

#!/bin/bash
echo Please input the file of replacement list:
read list
for ($1=key) in $list ; do
	sed 's/$key/$2/g' > new.txt
done

But of course this won't work.
Well, there is no hidden meaning in this script, i think.
Please tell me the script.

Look at vgersh99's reply(post9) in http://www.unix.com/showthread.php?t=20262

Vino

Thanks vino.
I can use this.
And your code is simple!