Applpescript: Reading Text file for List of Files - automation

Question

I have been trying to cobble together a script to take a list of files from a text document and have applescript go through the list line by line and then do something with the file. In this case it is changing the label on the file, but we would use it in other instances to move files, etc.
It works with a test file on my desktop the files get marked with the purple Label, but when trying to run it in the folder I actually need to it fails with this error message:
error "Finder got an error: Can’t set 1 to 5." number -10006 from 1
The text files are the same except for the length of their content.
Could this be a an issues with filenames, and if so how do I make the script more tolerant.
Here is the script:
set textFileContents to POSIX path of (choose file)
set dataList to paragraphs of (read textFileContents as «class utf8»)
tell application "System Events"
repeat with thisFileName in dataList
tell application "Finder" to set (label index of files whose name is thisFileName) to 5
end repeat
end tell
Any help would be appreciated, thanks.
1080074 3.tif
1080074 2.tif
1080069_A1.tif
Here is the final code from the solution to this problem and some further work I did.
Thanks to #Mark Setchell & #jackjr300 for all of their patient help.
set justpath to POSIX path of (choose folder with prompt "Select the Folder with Files You Want to Use")
set textFileContents to (choose file with prompt "Select the list of files")
set dataList to paragraphs of (read textFileContents as «class utf8»)
tell application "Finder"
repeat with FileName in dataList
try -- need a try block to ignore error, in case that the file has been moved or deleted
set label index of (justpath & FileName as POSIX file as alias) to 5
end try
end repeat
end tell

Answer 1

You seem to have a spurious tell application "System Events" in there. It works like this:
set FileName to POSIX path of (choose file)
set FileRecords to paragraphs of (read FileName)
repeat with ThisFileName in FileRecords
say ThisFileName
tell application "Finder" to set (label index of files whose name is thisFileName) to 5
end repeat
Note that my test file isn't UTF8.
Update
By the way, if all you want do is set the label colour on some files, it may be easier to do that from the Terminal and not worry with Applescript. Say you start the Terminal, and go to your Desktop like this
cd Desktop
you can then change the labels of all files on your Desktop (and in any subdirectories) whose names contain "Freddy" followed by "Frog" (i.e "fileForFreddyFrog.txt", "file from Freddy the Frog.php")
find . -name "*Freddy*Frog*" -exec xattr -wx com.apple.FinderInfo "0000000000000000000700000000000000000000000000000000000000000000" {} \;

Answer 2

You need to specify the folder because the finder has no current folder, except the Desktop if you don't specify a folder.
set textFileContents to choose file
set dataList to paragraphs of (read textFileContents as «class utf8»)
set theFolder to "/Users/jack/Desktop/xxx/yyy" as POSIX file as alias -- change it to the path of your folder
tell application "Finder"
repeat with thisFileName in dataList
try -- need a try block to ignore error, in case that the file has been moved or deleted
set label index of file thisFileName of theFolder to 5
end try
end repeat
end tell
Change the path in the third line of this script
--
If the text file contains the full path of the file, you can use this script.
set textFileContents to choose file
set dataList to paragraphs of (read textFileContents as «class utf8»)
tell application "Finder"
repeat with thisPath in dataList
try -- need a try block to ignore error, in case that the file has been moved or deleted
set label index of (thisPath as POSIX file as alias) to 5
end try
end repeat
end tell