I'm also struggling with this at the moment. The fitness mags I'm reading says I should change up my workout routine and look at my calorie consumption because if my calories are too low, my body will go into starvation mode and not let me lose weight. I've started implementing this as of last week. Will see how it goes.
YOu are gaining in muscle mass, which takes up less space (thus your looser clothes) but actually has more density per square inch, so 2 people who weigh the same amount can have very different fat composition. You are showing positive progress! So focus on the benefits of your exercise program - more energy, right?
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