Yup, it's a warm-up.  You want to do some cardio beforehand, but not
too much.

This boils down to calories.  If you eat less calories than you burn,
you burn body fat.  LC makes some people's metabolisms work more, or
more efficiently, hence they burn more, but it's still in vs out.
See: http://www.geocities.com/jenny_the_bean/proteincalc.htm

Olives, mayo, cheese too.

Liver glycogen has little to do with exercise.  It's muscle glycogen
that counts.  Liver glycogen helps in the long run by keeping insulin
up and promoting an anabolic metabolism, but asdlc experience says it
isn't significant (for us LCers at least).  Most LCers either use TKD
(some carbs just after workout) or CKD (carb-up once a week) to
replenish muscle glycogen.

Also note that a regular "off-diet" meal or day is a major psych
boost, and can help you stick to your diet longer (i.e. better
long-term results).  Whatever works for you.  Note, however, that
mixing high carbs and high fat at the same time may cause problems.
If you do a high-carb meal/day, try to limit fats for those
meals/days.

If the liver is low on glycogen, it will convert up to 58% of the
protein you eat into carbs.  How much depends on the types of proteins
and the glycogen depletion.  So, each gram of carbs you eat spares
about two grams of protein.

It won't stop the carb conversion.  The veggies are there to provide
micronutrients and fiber more than anything else.

Even with success, it can be worth it to play optimization games.

In the long run it is much more effective to follow the core Atkins
process as it is written.  If you're on Atkins anyways!  The Atkins
process in OWL *WILL* stop you from feeling wierd by the end of the
second or third week, so by doing that cycling you are prolonging it
in an effort to fight it.  By fighting it you give it strength.  As
to glycogen and exercise, you need to invest the month it takes for
the body to adjust before you can get the benefit of added endurance.
In this too, your cycling is preventing that from happening and by
fighting the issue you make the problems stronger.  The way out is
through.

Being in ketosis makes the body stop wanting to store new fat.  Simple
as that.  Once in ketosis the balance of hormones favors glucagon over
insulin and fat flows *out* of storage.  Once in ketosis it takes a
vast overdose of dietary fat to force it against the flow.  The one
example the Atkins Center has was a person who ate an entire stick of
butter each night as a snack in addition to the usual three digit Atkins
fat intake.  I'm certain you're not eating over a hundred extra grams
of fat, so that's not an issue for you.

For the ideal level of fat, it's in principle simple and in process
laborius.  It takes combining several guidelines from various sources.
I'll go over how to get the ideal levels for the various numbers and
then use myself as an example for the arithmatic.  Note well that when
discussing "ideal" any system that is one-size-fits-all should not be
considered at all if there is a custom-tuned process available.

Atkins supplied a process that custom tunes the ideal carb level for
each individual body, the CCLL, just below the level that knocks you
out of ketosis.  Eating carbs under the CCLL reduces T3 output and
leptin output and results in more stalls than at CCLL.  But Atkins
only gives you your ideal carb level so we must move on to other
sources.  My CCLL is 50, so that will be used in the arithmatic below.

Eades in Protein Power supplied a process that custom tunes the ideal
protein level for each individual body, the minimum to maintain lean
mass.  Any more than that and protein gets burned as fuel.  The trick
is it gets converted to glucose at somewhere around 40-50% efficiency.
Thus extra protein is at best just extra calories and at worst extra
carbs.  My minimum is 77 per the process in PP.

There is no similar custom tuned method for ideal fat intake that I
have ever found, so I will back into it using arthimatic.

There are several reasonable guidelines for calories going around.
Some use your current weight, some your lean mass, some your ideal
weight.  Think it over and pick one.  I chose ideal weight in pounds
times 10 to give daily calories.  Since my ideal weight is 170-175
(also discovered from the process in PP), my ideal calorie intake is
1700-1750 and in practice my calorie intake bounces wildly in any one
day but averaged across a week stays stable at 1800.

So let's do the arithmatic:

1800 minus 50 grams of carb, 200 calories, is 1600 remaining.
1600 minus 77 grams of protein, 308 calories, is 1292 remaining.
1292 calories from fat, divided by 9 per gram, is 143.5 grams of fat
daily.

That's the very best I can do to show you how to figure out your
ideal fat intake.  Being on the core Atkins plan finding your CCLL by
spending a week out of ketosis to find your ideal carb intake below
which stalls are more common, book number 1.  Following the strength
of the Eades plan to find your protein minimum and ideal weight, book
number 2.  Finding a good guide to calories to improve on the rough
guideline I suggested above, book number 3.  No book gives ideal fat
level so do the arithmatic above, still a total of 3 books.  To arrive
at the ideal it should come as no surprise that figuring out the ideal
should take more than one book.  Homework time, or put guesses in some
of the parts like I did to get an answer that is close to the ideal.

... Or just follow the guidelines of your selected plan and it will
work just fine.  Popular plans work; that's why they are popular.  But
for the *ideal* you need to use the stength of each and go to other
plans at the weak points.

Some comments on this:

It runs against intuition that more fat should result in more loss,
but it's true no matter that it is not obvious.  This is why low fat
plans average less loss than low carb plans.  There is real
biochemistry behind why more fat yields more loss just like there is
real biochemistry behind why more carbs yields more loss.
Withdrawing fat from storage requires the hormone glucagon in the
blood.  Eating carbs over your CCLL directlly causes insulin to
dominate and suppress glucagon on the one hand, and eating dietary fat
triggers a cascade of hormones that indirectly results in higher
glucagon on the other hand.  Reducing fat triggers starvation mode,
reduced glucagon, and less fat withdrawn from storage.  The rule that
eating more fat results in more loss is a metabolic loophole that
takes advantage of an evolutionairy mechanism that defends against
famines.

Of course it is possible to overwhelm this more-fat-eaten-more-fat-lost
trend with a vast overdose of fat, but following the guidelines above
will put you nowhere near that huge fat intake level.

My 77 and 143 levels are a bit much to maintain.  In practice I run
my protein level at least 100 and for the same total calories that
reduces my fat level.  But then I'm in maintenance so numbers for
optimal loss aren't important for me any more.  For the same total
calories, more fat and less protein gives better loss; for maintenance
for the same total calories, more protein less fat is easier to eat.