Here's the beauty of being very new to training--you should be able to gain muscle and lose fat at the same time. Your weight is not very high for your height, so I'm not sure you should go on any major diet, especially since you are still 17.

Here's what I would do:
1. be sure to get a gram of protein per lb of bodyweight.
2. cut back in the junk, like fast food and sodas
3. follow a sensible routine. I'd start off with a full body routine, 3x a week for a couple of months just to get started.

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Kevin

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