Are you accurately tracking your calories? Although there is more to it, weight loss is basically maintaining a fairly consistent calorie deficit (burning more energy than you take in). It takes, on average, a deficit of 3,500 calories to lose one pound of fat.
My advice is to track your food intake as accurately as possible, along with your exercise for at least a couple of weeks. Also, though I guess it's possible, I think you may be burning significantly less than 700 cals on the treadmill.
In any case, don't give up and do let us know how you progress.
47 M 5'8"
May 4, 2010...... 440? lbs. (Start FitDay Size 60 Jeans)
June 19, 2010.... 393 lbs. (First Weigh-in)
June 19, 2011.... 229 lbs. (164 lbs. gone in one year :-)
Current Weight... 185 lbs. (Size 36 Jeans)
Next Goal 169 lbs. (07/04/12)
Ultimate Goal 165 lbs. (12/31/12)
The best exercises for weight loss are Fork Putdowns and Table Pushaways.