Any good hosting company, such as sonichost.net and cyberpixels.com, won't delete it, but some bitchy hosts do, such as phphosting.com. If a hard disk is corrupt though, the file may get deleted. Yes it is perfectly safe to store usernames and passwords in these files as they can't be accessed over the itnernet except by PHP which won't treat them inproperly! One thing though, I ALWAYS recomend storing passwords as MD5. So rather than stoing
$password
make a new variable
$encryptedpassword = md5($password);