Michael, I found this to be helpful. Once I got to my goal weight, I knew I needed goals to help keep me motivated, so I changed to a body fat goal.
I have a Tanita scale that measures body fat and I know that any scale's accuracy is not altogether excellent, but, as you said, watching the change rather than considering the absolute number was very helpful for me. When I started, I was at about 27% body fat; now it's 19%. Whether or not it's actually 19% is anyone's guess, but I know it's a lot lower than it was before. It's been to 17, 18%, so my goal is to get back to that. My percentage never varies more than 1%, unlike Geoffers (unless there's a lot of water weight; see below).
I also find it very helpful to use the body fat percentage number to not freak out about water weight gain. For example, if I get on the scale and I'm up a pound or two, but the BF percentage is at, like 15, then I know it's water weight.
I'm toying with the idea of doing hydrostatic weighing just to see how close the result is to my scale, though there hasn't been an easy place to get it done as of yet.
You are doing awesome, my friend...keep up the great work; you are inspirational to many