Hi photocrazed

Did you include your daily activities in the BMR calculation? Have you seen wishes' website? She has a good explanation of calculating your BMR:
Free Simple Easy Weight Loss :: Free Weight Loss Website
I calculated my own daily calorie need is about 2300
calories and I eat 1500
calories on average which is 5600
calories a week deficit or about a
pound and a half a week (in theory!). Given that a
pound = 3500
calories. So as Sophie said, to lose a
pound a week you need a 500 calorie deficit a day, and therefore 1000 a day for 2lbs a week. 1200-1300 is the lowest intake for a woman so your current
calories are okay

I hope it helps

Congratulations on the 7lbs down so far and good luck!
EDIT: SORRY I WAS REALLY SLOW IN TYPING THIS OUT AND HONEYBUNCH82 HAS ALREADY TOLD YOU ABOUT BMR AND CALORIE NEEDS - SORRY!!!