Well, the way I lost the weight before was, of course, diet and exercise, but also cheating. It is very important. On Wednesdays, my boyfriend's first off day of the week, I eat whatever I want, and do what ever I want.
He cooks me breakfast and dinner, or we go out to eat, and I eat the junk-food I have been craving the rest of the week. Usually it's pancakes and bacon for breakfast (with real butter and maple syrup, lol), some kind of sensible lunch, like a big sandwich, or some sushi (I make killer hand-rolls) and something horrible for dinner, like Hot Wings, or Rally's (Checker's). Plus we bake on Wednesdays, like from-scratch mint-chocolate chip brownies, or zucchini bread (also with real butter!).
I also make a point to have something sweet every day, even if it is just a little extra honey in my coffee, or a mini-snickers, or a bowl of junk cereal. I have found that it is more important to cheat (while still eating less, or at least not going over [on your cheat day, no other day!] what you are burning) than it is to weigh yourself. Also, BAD idea to weigh yourself the day after your cheat day, cause even just a pound will make you feel guilty, and maybe cause a binge. Just get some decent exercise for a couple of days (INCLUDING your cheat day) and weigh yourself then.
Basically, if you are losing 3 lbs. a week, and then gaining 1/2 a pound one day a week, that still adds up to over 130 lbs. in a year, or some insane figure like that. More than okay, cheating is NECESSARY if you want to stick to it the rest of the time.
Actually, my scale sucks and will weigh you radically different if you wait a few minutes. I once took off my clothes and gained eight pounds! The tape-measure is my friend, and I have lost almost 5in. off of everything. (I suppose here is where I use the carrot?)
(ask me about it, or look it up, I don't want to seem like a commercial) to speed things up a bit, so that when I get there again, I don't do the same thing. 
Very funny.