Should i give up??????????

Hi,I am overweight and I started a low carb diet four weeks ago.atkins diet.I am a type 1 diabetic and i was previously on 65 units a day but on this diet i am on 40 units a day and my blood sugars are much more stable.I have not eaten carbs in 4 weeks and i gained weight.I dont understand I thought lower insulin leve;s meant weight loss.i do think I could do more exercise.At present I am just doing a 30 minute walk every day.I expected to have lost some weight after the first two weeks..but no:( so I started eating 2 meals rather than 3 aday but still no results.The only reason I could see that i gained weight is I eat alot of cheese and nuts but I thought this was allowed on atkins.Should I just go back to carbs...(which will increase my insulin levels)