This is short of the idealized internet version. Lifting is often used in wieght lost programs and I'm certianly not saying you shouldn't lift to lose wieght. But your not going to be able to add muscle and shred fat at the same time. If calories in > calories burn = tissue added (type of tissue dependent on type of food, time of eating, lifestyle, hormones, etc. If calories in < calories burned = loss of tissue aka is loss of fat and muscle agian the ratio is subject to variables.
Come on eric, if you bust ass on the weights and keep your k intake below your burn rate, you're still going to tone and strengthen muscle and get rid of some fat. You're gonna chage your body's composition.