If you're committed to the flat file, the simplest thing is iterating through each line, writing a new file & changing the one that matches.
Yeah, it sucks.
I'd strongly recommend switching over to a 'proper' database. If you're concerned about resources or the complexity of running a server, you can look into SQLite or Berkeley DB. Both of these use a database that is 'just a file', removing the issue of installing and maintaining a DB server, but still you the ability to quickly & easily search, replace and delete individual records. If you still need the flat file for some other reason, you can easily write some import/export routines.
Another interesting possibility, if you want to be creative, would be to look at your filesystem as a database. Give each user a directory. In each directory, have a file for locations. In each file, update the resources. This means that, to insert a row, you just write to a new file. To update a file, you just rewrite a single file. Deleting a user is just nuking a directory. Sure, there's a bit more overhead in slurping the whole thing into memory.
Other ways of solving the problem might be to make your flat-file write-only, since appending to the end of a file is a trivial operation. You then create a second file that lists "dead" line numbers that should be ignored when reading the flat file. Similarly, you could easily "X" out the existing lines (which, again, is far easier than trying to update lines in a file that might not be the same length) and append your new data to the end.
Those second two ideas aren't really meant to be practical solutions as much as they are to show you that there's always more than one way to solve a problem.