Call me crazy, and I know some here will disagree with me, but being a fatty myself.. not so fat fatty anymore.. I'm a total advocate of putting on muscle first then burning the fat..
one of three reasons, I think it's alot easier to put muscle on when you're fatter, your fat gives you more energy believe it or not.
two the more muscle you have on your body the easier it is to burn fat, like waay easier, speeds your metabolism up etc etc.
Three: If you're just like going hardcore burning fat to slim down, I think you'll burn alot of muscle too, and I think in the end that will make things difficult instead of easier.
I know everyone just wants to lose the fat first then go for the muscle, but do you want to be big and muscular or slim?? just my two cents from a Friendly Canuck.