Set Cookie Login Script !!! HELP !!!

[Seldimi]

Any good soul want to clean this code ??? I Get a lot of errors

(Username1 and Password1 are posted by a separate form and function_connect.php includes database connection. I saw it on a tutorial but couldn't make it work ....

<?php

$username1 = $_POST['user'];
$password1 = $_POST['pass'];
include "function_connect.php";

// valid login credentials 
if ($username1 && $password1) { 
$sql="SELECT id, username, password FROM pointgather WHERE 
username='$username1' AND password='$password1'";
$result = mysql_query ($sql) or die('Error: ' . mysql_error());
$user_data = mysql_fetch_array ($result);
$id = $user_data ['id'];
$username = $user_data ['username'];
$password = $user_data ['password'];

 if ($user_data['id'] > 0) { 
  setcookie ("user", md5($user_data['username']));  
  setcookie ("pass", md5($user_data['password']));  
  print "success"; 
 } else { $login_error= true; } 
} 

// grab current time 
$time=time(); 

// handle the logout event 
if ($logout == true) {     
 setcookie ("user", md5($username1), $time-3200);  
 setcookie ("pass", md5($password1), $time-3200);  
// header("Location: index.php"); 
} 

// handle validation event 
if ($_POST[user] && $_POST[pass]) {     
 if ($username1==$username && $password1==$password) { 
  setcookie ("user", md5($username1), $time+3200);  
  setcookie ("pass", md5($password1), $time+3200);  
 // header("Location: index.php"); 
 } else { $login_error= true; } 
} 

// handle login event, both successful and erroneous, or show login screen 
if ($login_error == true) { ?> 
 <table align=center style="font-family:arial; 
font-size:12; border:1 solid #000000;"> 
  <tr><td align=center bgcolor=#123dd4>LOGIN ERROR</td></tr> 
  <tr><td align=center><b>Invalid Username and/or Password</b><br><br>
<a href=index.php>Back</a></td></tr> 
</table> 
<? 
} elseif ($_COOKIE[user] == md5($username) && $_COOKIE[pass] == 
md5($password)) { ?> 
 <table align=center style="font-family:arial;
 font-size:12; border:1 solid #000000;"> 
  <tr><td align=center bgcolor=#123dd4>SECURE AREA</td></tr> 
  <tr><td align=right>
<a href=index.php?logout=true>Logout</a></td></tr> 
  <tr><td>You have successfully logged in.<br><br> 
   Encrypted Username: <b><?=  $_COOKIE['user'] ?></b><br> 
   Encrypted Password: <b><?= $_COOKIE['pass'] ?></b><br> 
  </td></tr> 
</table> 
<? 
}
?>

[Seraph]

what are the errors?