If you don't take in enough calories, your body will hold onto fat stores that are already there, in order to protect from starvation, which could be why you aren't losing weight. Try increasing your caloric intake and see if that helps.
A 1200-1300 calorie diet is not right for everyone; depending on your body size (current height, weight, bone structure and activity level), you may need more.
If your thyroid levels aren't right, for you, you will also have a much harder time losing weight. Just prior to my hypo dx, I gained right at 30 lbs in about 3 months, eating very few calories, attending Curves 3 times/week and walking for 30 minutes/day the other days. It's just that my metabolism had slowed down that much.
Thanks for the reply and the cool site. It says my resting metabolic rate should be 1617 Calories per day. Some how I think that may be wrong for me though. Considering I eat around 1300 cals a day and also exercise at least 30mins 6 days a week. If this were true I would assume I would be loosing weight instead of gaining :( Anyway thanks again, it was defenitley something worth check out.
Not a dumb question at all, but can only answer by saying it depends on how hypo your are. The more hypo you are, the lower the metabolism would be. This is something that can be measured by testing for basic metabolism. Testing for BMR or RMR is not done very much any more, probably due to the influence of insurance companies holding down cost.
You might find this link interesting. It gives you an estimate of what your Resting Metabolic Rate should be.
http://www.shapeup.org/interactive/rmr1.php