Hey shortyg, not sure if this is scientific or not, but my experience has been I usually loose in my arms after I've lost most other places. I am totally with you- my arms used to be huge! I hated the way they looked, and tank tops were out of the question! I started at 209 (I'm 5'4") and started noticing a difference in my arms around 170. Didn't actually mind them until I got to 140. Now at 129, they're finally "good". I did work at toning them though, with weights. Figured if I couldn't have skinny arms maybe I could at least avoid the extra "wave" the bottom tended to give! I started doing weights around 180 and I think this really helped. My arms are toned and finally fit my body.
Good luck with your weight loss! It's tough, but totally do-able if you put your mind to it!