I am not a medical doctor yadda yadda yadda.
When you first begin to workout, it will seem like you are gaining inches because of all the water your muscles retain. It will gradually go away. Eating fewer high glycemic carbs will help you lose that little annoying pooch that rides just below the belly-button. Complex carbs are the ones you want to keep- stay away from starchy foods like rice, pasta, white bread, potatos, etc. The only way you can get rid of fat is to burn more than what you take in. You can do this by lowering your overall calorie count and including more activity in your lifestyle.
Crunches are excellent to tone, but make sure you are using your abs to raise your head and shouldes off the floor; otherwise, you are just wasting your time. Doing 20 slow and controlled crunches are better than 300 quick ones. Remember, it's quality, not quantity.
You also can't spot reduce. Sorry, but only cardio burns fat.
You should also work the muscles in your lower back as well as everything else. Your body is really a machine- each part relies on another to function.
Also, the best way to do this is long-term. Rushing these things only leads to fatigue and injury. Creating good habits takes time, and while short-cuts seem most convenient at the time, they will not help you in the long run.
Whew. I just wrote a book. Sorry about that.
Edited- Whoa. I need sleep. Please excuse the abuse of grammar and spelling!
(right now its a 2 pack 
)
, My knees 
Owww....
