I've been doing my own variation of the cereal diet and so far it is working pretty well for me. Luckily I LOVE cereal.
I've been really trying to watch my fat intake. I cut out butter and mayo and sadly, ranch dressing...I LOVE ranch dressing. I also cut out fast foods and fried foods and try to stick with white meats for meals. But the other thing I am doing is substituing cereal for snacks. There are 3 I keep on hand at all times. Raisin Bran, Fruit & Harvest and Frosted Flakes. I know the Frosted Flakes have little nutritional value, but they are my favorite cereal and I use skim milk so they are pretty much fat free and I figure way better than chips and dip or ice cream with hot fudge on it. I usually have a bagel and bananna for breakfast, a small bowl of cereal for a late morning snack, then
a bagel with turkey for lunch and then a semi-regular dinner, just watching the fat grams and then a bowl of cereal for a snack at night. I also keep a baggie of Cinnamon Life squares around at work for munchie cravings.
I'm doing pretty well on this (I've lost 12 pounds) and I'm not even sick of cereal yet. I can't do diets where you have to count calories and once you reach your limit you are done. I only watch my fat gram intake (I try to stay at 20 grams a day and definitely not over 30) and then have other options if I do get hungry once I've had my limit in fat grams.