Use regular expressions to find hyperlink patterns.  Then re-save the content with the html a tags.
EDIT:  Here is an example to get you started, Run this as a console app to see whats going on:
class Program
    {
        static void Main(string[] args)
        {
            string s = "http://www.google.com is the best site, followed then by http://www.yahoo.com";
            string pattern = @"http(s)?://([\w+?\.\w+])+([a-zA-Z0-9\~\!\@\#\$\%\^\&\*\(\)_\-\=\+\\\/\?\.\:\;\'\,]*)?";
            System.Text.RegularExpressions.Regex regex = new System.Text.RegularExpressions.Regex(pattern);
            System.Text.RegularExpressions.MatchCollection matches = regex.Matches(s);
            for (int i = 0; i < matches.Count; i++)
            {
                Console.WriteLine(string.Format("<a href=\"{0}\">{1}</a>", matches[i].Value, matches[i].Value));                }
        }
    }
The regular expression pattern was taken from: http://weblogs.asp.net/farazshahkhan/archive/2008/08/09/regex-to-find-url-within-text-and-make-them-as-link.aspx