I would suggest trying to use textscan. The specifics of the input to the function will depend strongly on the setup of your text file. But, from what I can tell you have 3 columns (for instance, 'directory1' is in the first column, '/media/fpdata/data1/' is in the second column, '#data1' is in the third column).
In this case, try the following code:
fid = fopen('config.txt'); %this will open the file for read access
C = textscan(fid,'%s %s %s'); %scans the file, using '%s %s %s' as the FormatSpec
mask = strcmp(C{1},'directory1'); %finds matches in the first column for the string you want to find (in this case, 'directory1')
d = C{2}{mask}; %extracts the corresponding second column
Once you run the code above, you can change to the desired directory using:
cd(d);
