Once you've set up the Linked Server, you can write SQL statements directly against the Linked Server. For example,...
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you could write the statement INSERT INTO local_table…SELECT col1, col2,… FROM linked_server.db1.dbo.foo.
When importing data from text files, simply use the BULK INSERT statement or, my preference, call the BCP command line utility using XP_CMDSHELL within the stored procedure. It takes a little work to get the exact XP_CMDSHELL string correct. All you have to do is encapsulate the BCP command-line string within a parameter for XP_CMDSHELL extended stored procedure.
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