Loose Skin from Rapid Weight Loss

First, a little background:

I lost a massive amount of weight much too quickly: January 2010 I was 255 lbs (5'2"), dropped to 230 lbs by July 2010, and then dropped to 130 lbs by February 2011. I had adopted a very rigorous exercise regime and a dangerously low calorie diet (daily intake ~750-1000 cal), insomuch that I often had a negative calorie deficit of ~ - 1000 to -1250 cal/day. I was not on MFP at this time and did not have the wonderful and wise advise of all of you!

As a result, I became quite ill and lost a decent amount of hair. (ASIDE: To those of you wishing to drop weight very quickly, please do not. It is not worth it, and may cause severe health problems. I now have hypoglycemia and anxiety around weight gain and food.)

I had sustained many injuries from running long distances every day, and after the admonitions of a physiotherapist, took the last 6 months off of running and focused on low impact, lower intensity exercises. Additionally, due to my poor health I was strongly encouraged by my GP to increase my daily calorie intake to at least ~ 1400 - 2000 to aid in my recovery.

As a result of the sudden decrease in physical activity and increase in my daily food intake, I had gained ~ 20 lbs over 6 months. My physician said this was to be expected and encouraged given my current state of health. To be quite honest, I was not convinced given how hard I had worked, and have been quite upset since the weight started coming back on. However, I have regained my health.

Since I have been eating at least my BMR, my skin has shown massive improvement. I still have loose skin/flab on my mid-section and inner thighs. My first goal is to lose 20 lbs I had gained to go back to 135 lbs; my final goal is 125 lbs. This time, however, I want to do it slowly so that I can tone my body and not make myself ill.

Since I am 25, I feel that it should be possible to tighten this skin. I believe that with discipline, dedication, and the correct toning exercises surgery should not be necessary. I have heard many of you mention in passing Jillian Michaels (?) work out videos; I also could not help but notice that many of my fellow MFpals are incredibly toned.

For those of you who have lost weight rapidly, how have you addressed the flabby/ loose skin areas? Can anyone suggest or direct me to a resource that clearly and concisely outlines a regimen that could address particularly "stubborn" mid-sections?

Thank you!