Need help with an uprising.

I started a game in lingo to run via flash 2-3 years ago, it has just started gaining commercial interest and I have funding to help it run smoother and work more efficiently as a whole before i begin marketing it.
I recently found there was a huge strain on the server, so after investigating I found the problem.
The thing is, the thousands of user accounts are all drawn from a single folder on the server e.g '/users' and each account has it's own text file 'examplename.user', each text document around 2-4kb in size with content resembling something like

regdat=000000
regdob=000000
regeml=email@mail.com
accmember=admin
accstatus=0
accwarnings=0
lastlog=000000
listfriends=friend1,friend2,friend3,friend4,friend5
guilook=1
skillnavg=1000
skillfght=1000
skillagil=1000
skillcarp=1000

(just a small idea of an account)
I hugely regret coding it this way.
After a bit of talking with other amateur programmers I know, we talked about us attempting to put them in one big user database.
We have no idea how to do this without any possible errors.
I just backed up the test server and need suggestions what to do.
Help /prog/

Use Silverlight and MS Access.
I'd recommend doing your development live on the production server, that way you'll save a deployment step, and your users can instantly benefit from improvements.
For transferring the data, hire about ten interns to read the files (lucky you used a plain text format, eh?) and enter into the database. Have them all work in the same room, that way they can talk to each other to find out which files haven't been transferred yet.
There's several good books on this topic, and I'd especially recommend TAoCP and Structure and Interpretation of Computer Programs, both of which helped me greatly with a similar projects some years ago.