...relax about it a little bit, I'm sure you look great,
I'm sure it is mostly all in your eyes.

or your using a cheap mirror.
Try this...it is a GREAT way to jump-start the fat-burning process in your body:
First, up your cardio to an hour/day
Weight training to mon/weds/fri (lift heavy but keep good form...don't lift SO heavy that your form gets too sloppy...but push yourself. It should NOT be easy.
(Each pound of lean muscle we preserve can burn 30-50 more calories, potentially fat calories.)
Don't do too many crunches, it won't burn the fat in your tummy, it will just build your abs to the point where they make you look fat until your flex them.
WHEN you do your cardio is very important as well.
FIRST thing in the morning, before you eat anything is best. Get yourself a coffee, a glass of juice, and get on the bike, or something.
If for some odd reason you aren't determined enough to get out of bed in the morning to get your cardio in, then doing the cardio AFTER your weight training would be next best.
Now to your diet...
"trying" to watch what you eat isn't the same as "watching" what you eat.
you want to be successful or you don't. its as simple as that.
1700 calories is not a bad place to start.
you need to have a set diet-plan, and eat 6 times a day.
Protein is important. Lean muscle helps to burn fat faster. You need protein to build lean muscle, and to help your muscles to not be sore.
Here is a GREAT way to get your body prepped to burn fat:
The secret here is to turn your body into a FAT OXIDIZER. This requires a short transitional period that is kind of uncomfortable. But after a few days of adjustment, you'll be fine. When trying to burn FAT, your body prefers to burn glycogen (glucose) and protein (muscle) for fuel. It does not want to tap into your fat stores because it thinks you are starving. We try to circumvent this by using meal frequency and small 200-500 calories adjustments, however it is more critical to make macronutrient changes. You have to change the body's fuel preference away from carbs and protein and towards fat. How?
Limit carbs- without carbs the body must chose between fat and muscle(limit...don't cut them out completely). We use anti-catabolics to preserve LBM(lean body mass) at all costs, so if there is less glycogen, and muscle is spared, then what becomes the preferred energy source - FAT!!! This requires eliminating
ALL sugars- ALLLLL!!! and even post workout! It also means
raising your fat intake in order to teach the body that this is the new fuel source- tell it to GET USE TO IT! So now, even though you are eating more fat, you still want to maintain a level slightly under the body's energy requirement- this is when you turn to your FAT STORES- the new preferential fuel source! Where do the CLEAN carbs play into this? Well, every so often you need to replace some glycogen in the liver and muscles, this prevents ketosis and ketoacidosis which can cause LBM loss.
What's a clean, slow burning carb? Generally we take into consideration where a carb sits on the Glycemic Index, it's fibre content and how rapidly it will convert to sugar once in the body. Slow-burning carbs include sweet potatoes, yams, old fashioned/steel cut oats, scotch/Irish oats, long grain brown rice, apples, berries, peaches, grapefruit and dark green veggies such as spinach and broccoli.
I hope this helps ya out a bit. If it is too overwhelming, I'd be glad to explain it more...just ask.