Bad News: you'll never stay on a diet. It aint gonna happen. The normal diabetic diet is restrictive enough as it is. You should see the weight loss diet for diabetics. There's NOTHING to eat.
In 48 years I have never weighed more than 105 pounds. I'm 5'3. However I was seriously ill with an antibiotic resistant disease I got from one of my students from Mexico. They come up here w/ TB, cholera, whooping cough, scarlett fever you name it whatever we've erradicated here they immigrate w/. It's not their fault Mexico has such bad health care. At any rate at one point I had a bonfire of a fever that was soaking through my matress. I was dying. One of the drugs they used to save me caused me to gain 85lbs.
Not only did I recover the weight gain caused me to become a diabetic. I have now lost 53lbs. But I didn't diet. I eat what I'm supposed to, test 5 times a day (I'm a little paranoid) and exercise 5x a week for an hour. I ride a lifecycle in my garage and watch a movie or TV. By the time my 1 hour alarm goes off I'm so into what I'm watching I feel like I just started.
DO NOT IGNORE YOUR DISEASE. It can and will kill you in the end if you don't take care of yourself. Sorry but it's the harsh truth of the matter. Byetta is an injectable drug that many people say helps you lose lots of weight but the first two weeks are miserable. There are seriously bad side effects. If you have time to have a constant headache and barf all day for two weeks go for it. After two weeks it's all supposed to subside. Whatever you do do not go into denial and go drinking, eat like you used to etc... You'll be doing yourself a lot of harm in the long run.
I don't want to be mean but the faster you accept your situation the better off you'll be. And MOVE exercise is key. Good luck! Blythe