You can (should) write a PHP script which will read from your file and update the user table in db accordingly. Since it's only user table there wont be any complications to worry about just dont forget to update your counters after you run the script. In your script you can (should) configure any other field's default value other than username and password.
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Keep in mind, the passwords will be in plain text.
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They can be plain text in your source file but you have to MD5 them while your scripting is writing them into your db..