sunnymae, sunnybunny is totally right. In time, this will work out. If you measure your fat percentage (a trained person using calipers is best, but you can use an electronic measure, if you want) regularly, you will know when weight gain or stall is due to muscle growth. That will help. Measuring yourself will help too, as will watching what happens with your clothes (are they tight or loose?).
That said, what are you doing for Phase 2? A lot of people start eating several servings of starches and fruit right away, which isn't a great idea. Just try one thing, either a starch OR a fruit, and do it for a whole week. See how your body reacts. If all is well, add something else and do that for a WHOLE week and check again. If at any point things go wrong (you get cravings, you gain a lot of weight), try something else instead or try eating it at a different time of day. It's different for each person, but it took me about three weeks to figure out that I can have one starch and one fruit a day, and I can't eat them before lunch or I get cravings. Each person is different. During those three weeks, I gained five pounds, but I lose them and 90 more pounds after that, so it was definitely worth it.
Adding exercise is a GREAT thing and it will definitely help you lose your weight. Don't give up girl!