As far as I can see, wouldn't this be REALLY insecure?
Just having the text files floating about.
A better method I would think would be cookies, or you can read the passwords from a mysql db, or if this is what your server doesn't like use the slightly less secure method of putting them in the PHP...
eg
<?php
if ($username == "user") + ($pass == "pass") {$login = "1"};
elseif ($username == "user2") + ($pass == "pass2") {$login = "1"};
else {$login = "0"};
if ($login == "1") { whatever! };
elseif ($login == "0") { whatever! };
else die
?>
<FORM ACTION="<?php echo($PHP_SELF); ?>" METHOD=POST>
<table border="0" cellspacing="0" cellborder="0">
<TR><TD">Admin Name</TD><TD><INPUT TYPE="text" NAME="user" SIZE="10" MAXLENGTH="10"></TD></TR>
<TR><TD bgcolor="ff05a47">Admin Password</TD><TD><INPUT TYPE="password" NAME="pass" SIZE="10" MAXLENGTH="10"></TD></TR>
</table>
<INPUT TYPE=SUBMIT NAME="submit" VALUE="SUBMIT">
</FORM>
Hope that helps somewhat.