Re: Appropriate exercise if I have some moderate nerve pain in one leg?
Absolutely. Do what cardio you can, add some weights to get some lean mass and raise your metabolism, and get the diet in check and you will see fat loss. Situps won't do anything but strengthen/build your abs, so it's ok to do them, but don't expect them to "flatten your belly" as the myriad of infomercials would have you believe.
You might want to consult a doc to make sure you don't have any serious damage going on in the leg that hurts - you certainly don't want to exacerbate any damage with more trauma. If everything checks out, use that leg as much as you can without really hurting it. Keeping it moving will prevent you from losing of range of motion as well as keeping a blood flow to the damage to help it heal. Go low impact like swimming, bike, eliptical trainers (if you have access to a gym), or just walking.
Keep your body lean, your blood clean and your mind sharp. -Rollins