Can you post the query that you are executing every 5 minutes?
Generally speaking, stored procedures will execute faster. But if you are executing a sub-optimal query (i.e. you are forcing a table scan or some other resource-inefficient method) you probably will not benefit by using a stored procedure.
How large is (i.e. how many rows are in) the "core table?"
How do you accomplish this step:
pull the data into a seperate table so i can work with it without harming performance
Are you using a single "select into" statement or are you executing a select and then executing an insert for each selected record?
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Do you need to abstract your table into a view? It doesn't seem necessary, and will make indexing difficult.
In any event, this is your bottleneck:
"casting a date field to a smalldatetime as UPDATED."
1) Do you have to cast it to smalldatetime? Querying in this manner will force a full table scan. This means that SQL Server will go through every single one of the half-million records, cast it to a small date time, and compare it to your queried value. If any indexes exist, they will be ignored. (Think of it as you having to scan through a phone book looking for a number, except that the phone book is not alphabetized).
2) If you remove the cast and create an index, SQL Server will spend much less time and energy locating your records.
Assuming "KAGL_TMW_ORDERS_TABLE_NOT_VIEW" refers to the table (not the view), and "THE_ACTUAL_FIELD" refers to the field in the table (not the casted field in the view), try this:
CREATE INDEX KAGL_TMW_ORDER_DATE_IDX ON KAGL_TMW_ORDERS_TABLE_NOT_VIEW (THE_ACTUAL_FIELD)
INSERT INTO KAGL_TMW_NEWORDER SELECT * FROM KAGL_TMW_ORDERS_TABLE_NOT_VIEW WHERE THE_ACTUAL_FIELD >= @MINDATE AND THE_ACTUAL_FIELD <= @MAXDATE
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Too bad you don't have a mentor to work side-by-side with. It's a big help... But Yahoo! Answers is the next best thing!
Here's an article that describes how to create a DTS package and then put it on a recurring schedule using the SQL Server Agent. Should be of help to you.
http://articles.techrepublic.com.com/5100-6329_11-5031813.html