login to magneto from external site

Question

Hi,

I have my site with below structure.

http://mydomain.com/magento

mydomain.com/login.php

I'm logging into magneto from here.

I got session of logged in customer on login.php after submit form.

But when i see Magento there is no user logged in.

My login code is given below my magento version is 1.3.2.3

Mage::app();
Mage::getSingleton('core/session', array('name'=>'frontend'));
$session = Mage::getSingleton('customer/session');

$session->login($email,$password);
$session->setCustomerAsLoggedIn($session->getCustomer());
$session->start('frontend');

TIA