Auto Parse Links in Content Field?

Is it possible to create a plugin or module that would be able to look at the copy and auto parse a link and add the <a href> tag around it?

I would try to create this but really don’t know where to start. Any direction would be much appreciated.

I think that I have seen something like this in the repository. If it was not for links it was for e-mails or something similar. I will see if I remember what it was.

Edit: this is not exactly what you are looking for but it could be a source for ideas on how to get it done:
http://modxcms.com/Xternalinks-1445.html

hope this helps.

http://www.modxcms.com/Autolink-507.html