I have read the Rapid Fat-Loss Handbook by Lyle Mcdonald, a very interesting read and it seems to be all backed by sound, scientific thought.
I feel I need a second opinion, however.
I am wondering about its efficacy (as opposed to the more moderate diet, which Lyle does advocate in order to retrain eating habits) and its utility in fat loss keeping in mind minimal muscle loss
PSMF is usually called VLCD or Very Low Calorie Diets and has been prescribed by dietitians for years. The only modification Lyle added was the fish oils. These were mainly for people who are obese and moderate calorie approach didn’t work. Research has shown that after 6 months or a year, there is no difference in the the weight lost by PSMF and a moderate deficit diets. SO it gives you a jump start, that’s all.
How much do you weigh? Stick with moderate diet with a small deficit and you should be fine. As anatoly said, PSMF and weight workout, or any exercise for that matter, do not go so well together