Ok, I may be a noob to diabetes, but I am not a noob to exercise. My recommendation, is that you work with both your diet and exercise. It is true that exercise alone will make you more receptive to insulin, but you will be able to maintain the weight you want more easily if you work with both. What you want to decide first is how much you would like to exercise. (like 10 min of weight training right before 30 min of cardio four times a week would be a good start.) Then you need to determine how many calories you want to be eating everyday. (Your doctor/ a nutritionist/ or a personal trainer at a gym might be able to help you with this.) Then in order to get a good percentage of how many carbs you should be eating, try using sparkpeople.com for a couple of weeks to calculate the nutritional facts for EVERYTHING you eat. (This will be a pain in the ass, but you only need to do it long enough to get an idea of what kinds of foods work for you.) And as this might cause a drastic change in the way your body chemistry has been working, you will need to test your blood sugar a crap ton more. That part is especially important. And when you do exercise, make sure your blood sugar levels are higher than you want them to be before hand, because longer amounts of exercise will make them drop fast. (You probably already know this, I just want to cover all the bases.) Good luck!