Help? Weight increase from first week of Shaun T's Insanity

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When I started my new diet and Shaun T's Insanity program a week ago I was at 129 lbs. Now I am 130 lbs. I weigh a pound more than when I started, which comes as a huge surprise to me. However, I know for a fact that it isn't an increase in fat because I've measured various body parts and noticed a decrease in circumference all around with the exception of my biceps, which increased. The only explanation I'm left with is that I've gained muscle faster than I've lost fat due to the nature of the exercises. That having been said, I've read that it is extremely difficult to lose fat AND build muscle at the same time, and that you must have excellent nutrition in order to accomplish this. While I've watched my calories and all my meals have been clean vegetarian dishes I've cooked myself, I certainly have not paid attention to the ratios of protein, carbs, and fat.

It's entirely possible that I've gone over into the anaerobic zone while pushing too hard with cardio exercises, and so I've been just building muscle. I've ordered a heart rate monitor watch so we'll see with that.

Has anyone else experienced this while doing Insanity or any other types of exercise? Or can anyone explain what has happened? Many thanks!

-Jen