Abs behind baby belly?

I've been tracking with MFP and working out 6 days a week for the last few weeks. I've dropped 9lbs, and the other day I was down a few inches overall (most have changed again..).

I carry most of my weight in my stomach and thighs, and while I see noticeable changes in the muscle definition on my arms and legs, something is puzzling me. What used to be a soft, squishy baby belly has started getting hard, muscular almost.

Please tell me the fat will come off, and I'm not just adding to it by working the muscles..

Should I lose more weight before I start working on my stomach too intensely?

I do a combination of cardio, abs and machines at the gym..and usually stay under my calories, even though it's not always the "best" foods.