Upper body visceral obesity is very bad for type 2 diabetes:

http://www.medscape.com/viewarticle/564135

Fat is not simply benign; it is hormonally active and inflammatory, depending on its location.

I'm sure it must be very hard to lose weight when you are insulin resistant.

If the above link doesn't work try this one:

http://www.google.com/search?q=visc...type+2+diabetes

and click on the 4th article titled:

The Impact of Obesity on Type 2 Diabetes: The Role of Visceral Fat ..[