You do not state what operating system you are on, if you are on Solaris then the following will tar(1) up all the files listed in the include file:
tar cvf tarfile.tar -I include-file
The trick for enabling the untarring of the files to alternate location is to strip off the leading forward slash from each line of your include file and then create the tar file while located in the root directory.
GNU tar seems to strip off the leading forward slash (/) by default while creating the tar file as mentioned at: Making backups with tar and seems to support the include file function that Solaris tar(1) does with the:
-T, --files-from F
get names to extract or create from file F
Personally I would use "cpio" to create the archive unless there was some burning reason to use "tar". The "cpio" program will take file lists from "find .".
Again, the O/S matters and whether you want to explode the archive on a different computer.