Code:
#include <stdio.h>

int main(void)
{
   static const char filename[] = "file.txt";
   FILE *file = fopen(filename, "r");
   if ( file )
   {
      char line[80];
      while ( fgets(line, sizeof line, file) )
      {
         char key[40], value[40];
         if ( *line != '#' &&sscanf(line, "%39[^=]=%39[^\n]", key, value) == 2 )
         {
            printf("key = \"%s\", value = \"%s\"\n", key, value);
         }
      }
      fclose(file);
   }
   return 0;
}

/* my output
key = "DEVICE", value = "sync0"
key = "MEDIA", value = "x21"
key = "PROTO", value = "RAW"
key = "CLOCK", value = "64000"
*/