This does NOT mean the $_POST is secure (unless using SSL).
Generally is a bad idea to transfer the database's user and password, this is just good for MySQL interfaces as phpMyAdmin.
Better program your own (or grab a open source) user management system storing users in a table.
Then use defines or variables in a .php file (never text, html or others; and always between <? ?>) with host, user, pass and database
<?
$DB_HOST = "localhost";
$DB_USER = "user";
$DB_PASS = "pass";
$DB_USE = "database";
?>
then include() this file where you mysql_connect
Of course this configuration file should have privileges denying web users to watch or download the source code.