Hi Punky!
I know the Atkins book can seem a little confusing at times, but the info is all there if you keep looking.
Fat wise, he says on page 123 (the 2002 edition) to eat "...pure natural fat in the form of butter, mayonnaise, olive oil, safflower, sunflower and other vegetable oils (preferably expeller-pressed or cold-pressed.)"
He goes into even more detail on page 127. Just make sure you avoid "trans fats" eg margarine.
As for the ketosticks, I personally find them a waste of time and money. You are probably burning fat, as you are losing weight. That is your best guide as to whether or not the WOE (way of eating - diet is a dirty word!
) is working or not.
Ketosticks can change colour as a result of the fat you have eaten (especially if you test after eating a fatty meal) or from ingestion of alcohol. The other main reason the test can be positive is dehydration.
Let me repeat though, Punky, you are probably burning fat.
Good luck, Punky, and keep reading that Atkins "bible!"
Rosebud