Actually, there's a function called split() that would work a little smoother than this...
You have one line of the file as an array item, you setup a for loop that loops through each array item, and each time, you use:
$line_data = split(":", trim($arrFileData[$i]));
Assuming your User/Pass file is like:
user:pass
user2:pass2
user3:pass3
That will create a new array for each line. The username will be $line_data[0], the password $line_data[1]. Then you can just say:
if ($username == $line_data[0]) {
code here
}
Hope this helps...