That's almost exactly what I've done, except I'll admit I'm a little lazy on the exercise part. But 80% of weight loss is diet. A friend of mine works out religiously believing that since she exercises she doesn't have to watch what she eats and then wonders why she never loses any weight. She'll go to the gym and burn off a ton of calories, then stop at McDonald's on her way home and put back on everything she just burned.
You have to eat sensibly and watch your portions. This doesn't mean you have to give up all of the foods you love, it just means you have to eat way less of them. Make them rare treats rather than everyday meals. If you eat large portions, try cutting them a little at a time until your body gets used to eating less food. I used to eat one big plate at meals then go back for a 2nd big plate. Now I eat only ONE plate that isn't piled with food and I never go back for 2nds. My body has adjusted to less food, therefore it takes less to fill me up. Plus I drink water or skim milk with my meals, it helps to fill me up faster so I eat less.
I don't eat fried food, fast food, candy or sugar, bread (unless it's whole wheat), I limit how much pasta and rice I eat, I've switched to the fat free margarines, the lowfat salad dressings (which I still can't get used to, they're all disgusting in my opinion), and I'm eating more fish and leaner cuts of meat, trimming off the fat and peeling the skin off of chicken.
There's lots of things you can change. Your body will eventually get used to it and you'll lose weight