First, I want to say that for your height you are at a VERY healthy weight. Your target weight would put you at an underweight BMI. I checked, and somewhere around 130 is the lowest weight for a healthy BMI at your height.
As for losing the weight, eating less and moving more is the way to go and is what the overwhelming majority of people on this board do. An inexpensive tool you can use is the FitDay website. You enter what you ate for the day, and it counts your calories and gives you carb/fat/protein percentages, etc. There are also free forms of exercise, like walking, jogging, running, playing frisbee, etc. Another free tool - this site! All the people are very supportive and checking in is sure to keep you on the right track.
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