Does she have a buffalo hump on the top of her spine, where the spine meets the neck?
The areas where you say she has weight gain can occur with high cortisol levels - cortisol comes from the adrenal glands that sit on top of the kidneys. I've also read that PCOS (polycystic ovarian syndrome) can mimic high cortisol weight gain. PCOS is associated with carbohydrate intolerance. It's possible the South Beach diet isn't restrictive enough for her. She might need Atkins. But I wouldn't do that diet unless the doctor ok's it because of her type 1 diabetes. Gluten, which is in wheat, barley, rye and possibly oats, might be something for her to eliminate. It helped my daughter lose weight - and she never overate to begin with. Hang in there!
first off...how old is your daughter?...my son is 11 and overweight but his doctor says he doesnt want him to loose weight, just not to gain and he will grow into it....i guess it depends on age..I dont know if where she injects matters though..she may need to work out more and be careful of s.beach stuff it can cause awful belly issues...take care..and good luck !!