I have had a 401k for five years. Lets say there is $10,000 in it at end of 2000. Can I take $5000 of this money from my 401k and Roll it into a Traditional IRA then immediately convert it to a Roth Rollover. I am aware I will have to pay the taxes due (how is that calculated, I'm in a 28% tax bracket)... but I would like to start doing this each year so that I don't have a huge 401k at retirement and alot in my Roth Rollover IRA. I am also contributing $2000 a year in my personal Roth IRA a year and plan on having a separate Rollover Roth IRA if I can do it. I am 45 years old. Is there any publication I can read about this procedure.

If you are still employed by the sponsor of the Plan, the answer is no. There are limited circumstances under which you can get money out of the Plan - even if you are 100% vested. Those circumstances are generally limited to hardship withdrawals and distribution upon termination of employment. Hardship withdrawals cannot be rolled over.

You should check your plan document or Summary Plan Description, but the answer wil probably be no.