Hi Tammy,
I think the best way to figure this out is to look at your body. Are your clothes looser, is your belly smaller. I find that when I start exercising and dieting I do gain muscle mass at the same time as I lose weight. So at times the scale says that my weight is staying the same, but really I am losing fat. So as long as you are losing fat and not losing muscle you are ok. I prefer to gain muscle and lose fat.
I figure as long as my clothes are fitting and my stomach is shrinking I am on the right track