I'm following every rule but gained this week...

THANK YOU FOR ALL POSITIVE ADVICE! …
no grease, oils, butter, candy, etc. …
I like having the deficit but apparently it's not good

You've got a positive attitude and that's great. Sometimes it's hard to take the criticism and conflicting advice with a good attitude.
It does look like you would benefit from a better understanding of the site and your body. For instance, responding to some of the excerpts from your post…
Your body needs fat. You probably don't need as much as you were eating, but some vitamins are fat-soluble. Fat is a necessary component in your body. Your body can manufacture fat, but it's helpful to eat some too. Unsaturated is probably the healthiest kind, and you're more likely to find that in oils. Also, a diet that's extremely low-fat can be unsatisfying and lead to cravings.
If your settings in MFP say you want to lose weight, the amount of calories that MFP recommends already has a deficit built in. In order to lose weight, you need to use more calories than you consume. That is a deficit. And MFP calculated it based on the information you provided. You do not need to have a larger deficit. Too large a deficit can cause problems -- with your health, your appearance (hair falls out, acne, etc.), low energy and slower weight loss.
Have you learned what your BMR and TDEE are yet? Education can greatly help with a healthy, consistent and maintainable weight loss. The advice here will be very mixed, but take a look at who has been here awhile, successfully lost and kept off weight, cites medical and scientific sources when giving information, and then decide which advice to follow. I haven't got it right yet, but I've collected some of the advice I trust most here:
http://www.myfitnesspal.com/blog/Robin_Bin/view/how-to-use-myfitnesspal-427993
(If you like it, please give it a "thumbs up" vote.)
Best wishes!

(edited to correct some unclear wording)