What I am currently doing is 30 minutes of cardio in the morning on the treadmill, then eating 2-3 meals before I workout, workout heavy with mostly free weights (5-8 reps), and trying to watch my diet. Check out my workout log for this week and you will see what I am talking about. I would have to say that you should clean up your diet, do more cardio, but still hit the weights heavy to keep all of your hard earned muscle.