I\'m attempting to write a program that will generate a text file with every possible permutation of the alphabet from one character up to twenty-nine characters. I\'ve chosen 2
Even if you could store this on disk, like thirydot pointed out, you'd run out of time doing this.
Just generating (and not storing) all the 6-letter possiblilies took 24 seconds on my computer:
$ time perl letters.pl
real 0m24.837s
user 0m24.765s
sys 0m0.030s
Which is 7.7X10^-8s per word, That means it would take 8.4x10^33s or 2.6x10^26 years to do this.
You need to think more about your algorithm.