I never cheated on Phase1, and I was to the point where I wasn't having any cravings for sugar, I don't even know why I ate that cupcake. My progress isn't completely erased. I lost 13 lbs on P1, I went from 203 to 190. Yesterday I weighed myself in the middle of the day and I was 196, normally I only weigh in the mornings. I'm pretty sure I was probably bloated as well because I had ate at Chillis
I'm back on the bandwagon today though. I feel good about South Beach, and I know I want it to be my way of life, I guess I'm just still learning what I can and can't do. I'm going to do P1 all over again because I'm having a lot of cravings. I think this time when I reach phase two I am going to skip grains for a while and just introduce fruit. How did you guys transition to P2?

Fruit doesn't cause me cravings. I have all of it I want. I have open-faced (one slice of ww bread) sandwiches 1-2 times a week. 
The important thing is that you get back on plan right now. I agree doing at least a few days of Phase 1 again should help.