Try leaving out the 'echo'. I'm pretty sure that this is producing the '1'. It's not necessary anyway - whenever PHP includes a file it automatically drops out of "PHP code" parsing and into "HTML echoing", which is why PHP code in include files still need their <? and ?>.
What looks like is happening is that include() is including login_fail.inc.php, PHP is executing the code within it and all that folderol, and then include() returns a 1 to say that the file was successfully included - which the echo then echoes.
So in short, drop the echo. A quick test would be to call login_fail.inc.php directly and see if the 1 still gets printed. If it doesn't, then the echo is definitely the guilty party. If it does, then the fault has to be in the login_fail.inc.php page!