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while (<USEDPW>)
    {
...
open(USEDPW, "> $usedpw") or die "crap on me for writing $!";
flock USEDPW, 2;
print USEDPW "$pw\n";

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#notice we declare it OUTSIDE the loop
my $pw;
...
open(USEDPW, "> $usedpw") or die "crap on me for writing $!";
flock USEDPW, 2;
print USEDPW "$pw\n";