I have had great success.
Basically I exercise more and eat less.
I do not eat sugar or fat as much as I can avoid.
I eat very little unless I am going to the gym. Maybe 1000 calories a day mostly protein and some carbs.
On days I go to the gym (5 days a week), I exercise hard (1.5 hours at 90% of my max hr). To do this I eat a solid meal before going to the gym.
I went from pudgy 25% fat to muscular and lean 6% fat in about 1 year. I am also much faster on the bike or running, which feels great.
So my recommendation is to eat a lot less and exercise a lot more.
That account is quite unbelievable. Eating only 1000 calories would send a message to your body saying that you are in a "famine period" and everything you eat would begin to be stored as fat. Also, you cannot be "muscular" with such a diet because you need alot more calories(carbs and fats!) to build ANY muscle whatsoever. You may have lost all that weight from your regimen but I would not suggest such a diet to anyone or anyTHING for that matter. It just not that easy(well I'd think its hard. Christ, I eat around 3000 calories a day to stay lean.). I'd speculate that you aren't exactly the healthiest dieter at the moment.
The one thing I can see that I would agree with is your general statement.
Eating less and exercise will definitely help lose weight. HOWEVER, your deficit should be a number of calories below your basal metabolic rate AFTER you have already accounted for any caloric "burn" throughout the day.
Also, from what tippster said, for the average active grown male, it is reccomended that a minimum of 2300-2500 is consumed while women consume anywhere from 2000-2300.
You should consume carbs to sustain energy throughout the workout and I also use a postworkout shake that is composed of whey protein(fast-acting protein) and high Gi carbs. the carbs spike insulin which helps drive the protein straight to your torn muscle fibres and encourage growth and recovery. A preworkout meal is not neccessary unless you are training seriously.
PS. my nutrition guideline that I posted above mainly focuses on nutrition for weight training however I have consulted several experts and it has been verified that such guidelines can also be used towards cardiovascular activity(just don't eat before it unless you want cramps.)