Create Custom Permalinks from a database

How do I create permalinks using the data stored in a database?
An example would be im on my home page and there are news updates. If these were taken from a db how would i use the permalink?

DB would be something like this
id = 1
title = New News title
article = article content
date = 05/07/2011
permalink = new-news-title

When I hover over the link it would show http://www.mysite.com/news.html?id=1
and it would be the same in the url if I clicked it.
I want it to come up like http://www.mysite.com/news/new-news-title.html

Can anyone give me detailed instructions how to achieve this or point me in the direction of good tutorials that clearly show this
Thank you

hi cyanide, that is exactly what i was learning today - i found lot of examples how to do it when i searched “seo friendly url mod_rewrite”
it is not difficult.
regards

Thanks for that, could you give me an exact link to the one you used and a possible demo on a site your using it on, if there is any live
Thanks