Srini,
The Users.ini file is automatically loaded by TestStand when it is initialized. However, it is not necessary that you use the Users.ini file to hold your user information. Instead you can load the information from your database and programmatically create a UserList. You can create a UserList and populate the list with Users with the Engine functions NewUser and UserFile functions. For an example of the use of these calls please take a look at the examples in the <TestStand>\Examples\CreateDeleteUsers directory. You can modify or replace the FrontEndCallbacks.seq found in the <TestStand>\Components\NI\Callbacks\FrontEnd directory. The FrontEndCallbacks.seq is normally called when the Engine is initalized (unless the AutomaticLogin option is set). If you look at the sequence you will notice there is a Login and Logout call made to a C DLL. These handle logging the user in and out. You can insert your code to load the user information from the Database before these calls are made.
For information on database logging, I recommend looking at the TestStand Reference Manual. Chapter 6 gives a detailed explanation of the Database Logging architecture that TestStand utilizes. You can add more information to the database by modifying the schema that the Database Logger utilizes and modifying the ResultList to contain the additional data. The TestStand I: Introduction course manual contains two great chapters on database logging as well. Finally, take a look at the Database directory in the <TestStand>\Examples directory. You may be able to base your system from some of the code that exists there.
If you have specific questions, please let me know.
Thanks,
Tyler