For reading it all at once you can use:
$csv = array_map("str_getcsv", file("file1.csv",FILE_SKIP_EMPTY_LINES));
$keys = array_shift($csv);
To turn all the rows into a nice associative array you could then apply:
foreach ($csv as $i=>$row) {
$csv[$i] = array_combine($keys, $row);
}