Muscle burns more fat, keep lifting. Lifting will help you keep your muscle mass and lose fat. You may see the scale increase, because muscle weighs more than fat, so as you build, the scale may not move as quickly as you would like. I recommend Sean10mm's stripped 5x5 to start. http://newbie-fitness.blogspot.com/2007/01/stripped-5x5.html. Increase your protein/water, lift. Also, read this. http://fitnfly.com/learn-about-food/lose-weight-lose-fat