ever suggested that you go on glucophage to control your type 2 diabetes? Maybe you could discuss this with him. It might be easier and safer to follow the Atkins WOE if you were on something like this instead of insulin.
Have you thought of skipping the induction phase of Atkins and just slowly lowering your carbohydrate intake while keeping an eye on your sugar levels.
In some cases it is better to slowly wade into the water than to try to jump straight in. I agree with Lisa wholeheartedly. You should not try any of this without talking to your doctor.

If you are doing this simply to loose those 10 pounds, I don't know if it is worth it. If you want to do this so that you can control your diabetes then I would go for it and find a doctor that would back me up and advise me. I truly believe that diet can help control your insulin levels, but I don't think it is safe for you without a doctor to follow your progress.