The Joys (and Benefits) of Resting

I am on a serious rest day - from work and exercise. I really needed the break. My mind has been full, and my muscles have been getting the workout they have needed. I've not been losing pounds, as I had anticipated. I have lost about 2 inches off my mid section, as measured with my IKEA supplied paper measuring tape. A few theories:

1. I am increasing lean muscle mass (definitely in my legs and starting to show in my arms)


2. I am not consuming enough calories, and my body is holding on to the fat. (Hovering around 1,200 - 1,800 calories a day)


3. My scale is hosed up, and needs to be replaced.

Really could be any or all of the above. I am going to keep going, eat a few more calories, and see what happens when the lean muscle is built back up a bit.

There is a lot of research that seems to imply that rest days lead to better weight loss - I found a few examples:
http://www.weightlossforall.com/exercise-recovery-important.htm
http://www.eurekalert.org/pub_releases/2007-07/aps-err071707.php
http://www.itwire.com/content/view/13888/1066/