I see you say you've been exercising, but you didn't mention your eating habits...
Exercising is very important, but it can only do so much. Building muscle can help burn fat, but not on its own. What are your eating habits like? Maybe you could start by switching all your sugary drinks to water, and write down what you eat in a day and take a look at your caloric intake.
I don't know if you have an Ipod, but on my Ipod touch, I just downloaded this awesome app called "Lose It!" In it you can track everything you eat, your weight, calories, nutritional intake, and it creates a calorie budget for you and tracks your daily, weekly, monthly progress against your goals... I really like it so far. If you don't have an Ipod, that's certainly something you can do yourself in a food journal.
It's awesome you've started exercising. Once you start losing the fat, you'll start uncovering all the beautiful muscle you're building!
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