External Balanced two way sort/merge algorithm

I am presently attempting to write a program that will utilize the Balanced two way sort/merge algorithm.  I have a file of record containing auto part data indexed by part number.  I wish to take my data file(file of records) sort them and write the data to a new file.  I have an algorithm that I am having difficulty understanding.  If you have any documentation or reference material that may be helpful I would appreciate it.
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Documentation & Reference:
   Knuth, Donald A.

   "The Art of Computer Programming" Volume 3: / Sorting and Searching

       Chapter 5 - Sorting    Around pages  340-360

   Published by Addison Wesley

Should be available in any university library with a computer section, and any good bookstore.
It would be helpful if you could post some source code so we know where you are having probs
Use any popular WWWeb search engine to get a sample copy of Sort/Merge Pascal code.
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