Hi Kimmy,
I have struggled with the same thing from the beginning and you know I am an exercise junkie (usually workout in day and run in evenings, 5 days a week, and hike on Saturdays)........in the last 4 months the only thing that has broken my plateaus (and I have had several) has been to decrease my calories. I have tried exercising more, then less, eating more calories/protein, more cardio, more weight training, interval training, but still, decreasing my calories was the most effective for me. I know others may not agree, but when all else fails......
And, really keep track of your measurements. I didn't keep track of them too much when I started out, but now when the scale doesn't move, I usually see a difference in my inches and it makes me feel much better. It does make sense that as you are building muscle that you didn't have before, you would not lose weight. Your legs and arms will probably become more muscular and get bigger....mine did.
I have been at this for 4 long months now, and I am just starting to reap the benefits of all my effort. I feel much healthier and stronger. Just a few minutes ago, I ran 5K which I would never of dreamed of doing just a few months ago. I bought a 50lb bag of dog food today and, without any effort, tossed it in my trunk (surprised me!!), and last Saturday I did a 12 mile hike that was labeled "strenuous"....so just hang in there--the weight will eventually come off and, in the meantime, you will become much healthier and stronger!!!!