sed is good. perl works too. You can also do it with a perl one-liner:
Code:
perl -pi.orig -e 's/old/new/' *.txt
That swaps 'old' for 'new' in all files with a name ending with .txt in the current directory, and makes backup copies of the unchanged originals by appending .orig to the name.
s/// takes all the arguments that perl supports and can be written as s||| or s### if you need to use slashes.