Mass User Import

[nulltone]

The head admin of my school is going to basically give me a comma seperated database, in text format. This database will have a list of users, and their desired password.
As of now, it is planned that we will only have their name and password, but other information (if nessicary) can be placed in this file.
I have full access to this server (Linux), so I can use mysql on the command line.

1. First of all, is it possbile (through vBulletin, mysql, php, whatever) to mass add users like this? Has anyone made a script? I have done many searches and have found nothing.
2. Of all, how has it been done, or how could it be done?
3. Are there any complications?

Idealy, I would like the user preferences (no to signatures, yes to mail from admin, etc) in that file, but those can be set manually through the mysql command line at a later date.

Keep in mind, the passwords will be in plain text.