Confused???

I have been on a very low calorie diet for 6 weeks using the new directions products. For 6 weeks it worked, lost 13 pounds first 4 weeks on a 1000 calories per day. In the last two weeks, started working hard at the gym, caloric intake up to 1200 and only lost 2 pounds. They are telling me if I work hard at gym I need to take in more calories to stay at 1200 based on what i burnt. Then now, its keep calories low and work out less.

So I am really confused and trying to find that balance of what i eat and how much i work out. Would like to hear others experiences with this:
1. Do i cut out carbs and eat 1500 calories and try to burn 400-500 through cardio exercises
2. Do i eat only 1200 calories and just walk and keep exercises to a minimim

Just trying to find what kind of combination will work....I know there is no exact science - but hearing others experiences might help me come up with a plan. I am getting discouraged, but don't want to give up.

My total goal is 50 pounds - but 25 by July - so have 10 more to go and trying not to give up...I know, I know...I am rambling.

Thanks for feedback.