If you want to produce this list:
test1
test2
test3
...
Do like this:
C-x r n q (store the number 1 in register q)
C-x ( (start macro recording)
test C-x r i q (insert contents of register q)
C-x r + q (increment register q by 1)
RET (new line)
C-x ) (stop macro recording)
The easy way I do it is to make however many copies of "test0" I want, then make a trivial throwaway macro where I move my cursor to the number I want to increment, and hit M-x rolling-increment-number-at-point. (Of course with autocomplete...)
http://www.emacswiki.org/emacs/KeyboardMacrosTricks
From there: