I'm not sure if that's the only issue, but according to your description, the "option" part should be in file2. However, you try to get it from file1, so:
PHP Code:
parse(linetext, name, charsmax(name), option, charsmax(option));
...
parse(linetext2, name2, charsmax(name2));
-->
PHP Code:
parse(linetext, name, charsmax(name));
...
parse(linetext2, name2, charsmax(name2), option, charsmax(option));
If that's not the problem or doesn't fix it, I'd also request that you post some examples of the records in both of your files so we can better understand what you're working with.