Welcome to Gaia! ::

...Its shadows, they flow,
In rivers, in rivers...

First thing's first. Keep in mind that what works for one person could have the opposite effect on another. Also keep in mind that I've never really worried about my weight so what I say is based on what I've heard from others. (I recently lost about twenty pounds on accident and really want to get at least some of that back because I know its not healthy to lose that much weight in the span of three months....especially when I think the reason for it is because my heart would act up and start beating too fast at random times)

To start with, eating less can actually make you weigh more. It all depends on your body. The only thing guaranteed to happen by starving yourself is...well, starving yourself and making your body weak. Eat healthy foods(and I don't mean only salad, I've been told that expands your stomach) and regulate it carefully.
Even if you can't go running, exercise and a healthy diet is the key to losing weight(just make sure you don't gain muscle because muscles weigh more than fat) Find a good cardio outside of walking. Personally, I like to dance. I salsa, I belly dance(good if you want to work on your abs and cardio) and I enjoy playing a game called dance central(expensive though but it does get your heart pumping). Even if you don't want to dance though, just spend an hour walking in place, do different things to get different muscles working....maybe do jumping jacks to increase it. You can do a lot from your own living room while watching tv.(Or go get a trampoline...they're fun XP)
Other than cardio, focus on where you want to lose the weight. If you want to reduce your stomach, do your cardio, then do crunches and other ab work(can easily look up good ones online) then stretch so the muscles stay in place and you can cool down(I personally like yoga) And if you really want to make it sink in, maybe do more cardio before you stretch. Any area you want to use work that area, but remember to work on muscular endurance, not muscular strength. In case you don't know, that means small weights large repetitions. Say you can lift ten pounds on each arm in a certain way ten times, drop down to eight or five pounds and do it twenty to fifty times. Strength is a good way to improve, but endurance is what's important.
I wouldn't recommend any "lose weight quick" routines. Its possible they can work but the strain it can put on your body is not a good idea. You said you have knee issues, I do too. I was told I got bursitis in my right knee, it had swollen up to the size of a grapefruit and hurt like crazy. The exercise routines that say you can lose fast only say that because they strain you. Work your knee up to stuff like that, do little tasks and work it slow. If it starts to hurt, at most push a little more.
Don't risk your health to lose weight.

As for what to eat and how to exercise, that's mainly up to you. Avoid processed foods as much as possible, the stuff to preserve it is just ridiculous.
And(this could easily be wrong) I've seen a study that said eating a small dessert in the mornings could help you lose weight. It helps get rid of craving sweets through the day. Just don't go overboard and don't eat too much. Not everyone is like my sister who can eat three bags of chips, two two liters of soda, half a cake, and the regular food for the day and lose five pounds....
Not even I'm like that.

Start small, work your way up. Its unhealthy to lose a lot of weight at once.

Ive always been rather thin by drinking a lot of water and eating protein over everything else. My mom is on a diet called Ducan diet that she lot over 100 pounds on. Basically its high protein, you can have most vegetables and all carb's are cut out. I know you cant put pressure on your knee but try getting some small weights, doing crunches and other things you can be sitting for.

I do not recommend starving yourself, even if you do manage to lose weight that way, you are going to put it all right back on. Also, the no eating before bed thing is a myth unless you have a health affliction that prevents it.

Edit: I forgot, someone suggested tea and you can get this detoxifying tea that will help...clean you out. Its not pleasant but anytime I gain a few pounds it takes it right off.

The only weight you could lose is your boobs >.>

But like the others said, portion size, SNACKS ARE GOOD. Keeps your metabolism up. Water is good, fruit juices (Like the stuff we keep around), Fruit snacks, fruits, veggies, things like that. Eat what you crave, because it's your body's way of saying "Hey! I need some nutrient that's in this food!" Stretches should be good for you knee, just don't over-do it. Drag your brother out and make him walk to Hastings with you. Try and get on a regular sleep schedule. I've been told that MANY times, but I'm not gunna. If you're exercising in your room or the house, use your ipod to keep you motivated. Hell, if you want you can come out here and walk around~ I won't mind~

Edit: This reminded me I planned on walking today~~ Thank juu~