Nannjm,
The idea that you can swap fat for muscle is an absolute MYTH!
While strength and weight training will help tone and build muscle, it will not burn huge amounts of stored fat unless you are doing fast repetitions and getting your heart rate up. Guys, because they are physically stronger, have an easier time with this than we females do. You can have great muscle tone and not even be able to see it if it's lying under fatty tissue. Just take a look at those professional power lifters!
Aerobic exercise, such as biking, walking and/or swimming also needs to be incorporated as a part of any exercise routine if you want to force your body to tap into those fat reserves. The key is to work at a level where your heart rate is increased for at least 30 minutes after your warm-up. A great way to gage a comfortable "fat burning" rate for your individual physical condition, is to work out at a level where
"you are still able to talk...but don't want to." This is a good natural indicator to let you know whether you are working too hard, or not hard enough. (Hope that makes sense)
You should work at this level for 30 minutes, allowing yourself adequate time for warming up and cooling down before and after. This may extend your work out time a bit, but eventually you will notice an increase in your stamina and your ability to maintain this fat-burning heart rate for extended periods of time.
Okay...climbing down of of my soapbox now.