True measure of loss should come from the inches you lose not the scale. It's always nice to see it come off in that form as well but as long as you are losing inches that means you are most definitly losing fat. Unless, you aren't eating enough protein to maintain the muscle which means you could be losing some of that too. Then again, as you mentioned, something should be giving on the scale you would think. Anyhow, be sure to drink plenty of water. That is the magic ingredient to weight loss. 64oz per day plus about 8oz additional for every 25lbs you wish to lose. And, a little extra water if you are particularly active in working out. If you are really sticking to the LC diet as planned and drinking plenty of water, you should no doubt be losing the fat. Hope this helps