Simple questions about username token example

[lv]

I have created a web services from java first .  I need to add web services 
security - username token. 
I find UsernameTokenRequest.xml  in 
\apache-cxf-2.7.0-src\systests\ws-security\src\test\resources\org\apache\cxf\systest\ws\security\test-data
This xml file contains: 
 <wss:UsernameToken>
            <wss:Username>alice</wss:Username>
            <wss:Password 
Type="http://docs.oasis-open.org/wss/2004/01/oasis-200401-wss-username-token-profile-1.0#PasswordDigest";>FPqPsaAp7hWASdknPsbfZxIoDVI=</wss:Password>
            <wss:Nonce 
EncodingType="http://docs.oasis-open.org/wss/2004/01/oasis-200401-wss-soap-message-security-1.0#Base64Binary";>OJBNzEGDmTiD/lbeA+UDeg==</wss:Nonce>
            <wsu:Created 
xmlns:wsu="http://docs.oasis-open.org/wss/2004/01/oasis-200401-wss-wssecurity-utility-1.0.xsd";>2009-12-10T21:12:59.100Z</wsu:Created>
  </wss:UsernameToken>

Does it mean only alice with correct password can login?

If there are thousands of users need to provide username and password, how to 
write the xml file?

Thanks.