Sounds like you guys are right on track. It took me a long time to not be ruled by the scale. It still haunts me sometimes, but looking at "am I changing my lifestyle?" more than "did I lose x number of lbs." is helping.
Like Kira I set about 5 lbs. a month as my goal and then adjust.
On the treadmill I'll switch between time and distance to keep going, like I'll try for 5 more minutes, but if that seems too hard, I'll try to get to the next distance marker, like 1.5 miles then switch back to the 5 minute marker cause maybe I'll only have 2 minutes left to make that.
Don't know if that makes sense, but I do the same thing with the scale, try to get to the next 5 or 10, like 180 to 175, but I started (this time) at 182, so 178 is 5 lbs....so when I get there I shoot for 175...
Just a way to keep the mindset to keep going, don't give up, I guess that's the key, if your goal is getting in the way of keeping you on your program, making you feel bad instead of good, then it needs to be changed.
I think I've babbled enough...