Reidar is wrong. I personally don't post much in these threads, but I checked it because I knew someone would say "you can't lose weight and build muscle at the same time." That is total and complete crap. You can, and it is easy.
I think this is analogus to "Can someone train for sprinting and a marathon at the same time?" Of course you can. Unless you are going for a gold medal, its completely possible. You are telling me, unless the person is basically in a walker (analogus to really obese), that if they train for both their times will cancel out and they will not get better? Most people, even athletic people, could decrease their times for both with training. Now, if you want to be a world class sprinter don't run marathons and vice versa, but normal people can do both and see tremendous gains.
Now, with the problem at hand. Do what seems smart/right. You have the knoweldge to do this. Eat right, you know whats good and bad; eat more good, less bad. Eat less overall and instead of 3 big meals, 5-6 smaller ones. Then, hit the gym and lift weigths. Do this as a minimal amount of exercise. Go over to S&P and learn how to lift weights and do big taxing exercises such as squats and deadlifts. Then if you have extra time to some cardio, either running/biking or a sport like Bjj.
Reidar, if this guy does this (a simultaneously bulking and cutting program) what do you think will happen? He can easily do this and not burn out. He will gain some strength/size and at the same time cut out some extra fat around him. He will use some of his food/storage fat to build muscle, and his calorie deficient diet will help him lose some weight.
The reason why this myth exists is because you are not being the most efficient for both. This is along a continuum. In a perfect bulking phase you would never do anything that is catabolic to muscles. You'd do heavy weight lifting, eat a superflous caloric diet and never walk around and sleep well to maximize recovery. In a perfect cutting diet you'd eat very little and do a lot of aerobic exercise to burn even more calories. So, for some reason people don't understand if you do a little of each you can still get huge results. Will you win the Mr. O contest? Doubt it. Do you care? I seriously hope not.