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You can lose fat and maintain muscle if you do it slowly. I've found that doing low impact cardio helps you retain more muscle than doing intense cardio. Some people find it possible to lose fat and gain muscle. This would require keeping yourself in constant positive nitrogen balance (consuming protein every few hours or so) and not overtraining. Supplements such as caffeine and ephedra help too.
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That's exactly what I do, and said, Big Al (well minus the nitrogen requirements bit as im not well versed on that area of nutrition.)
AFAIK almost everything fat loss and muscle growth related comes down to blood insulin, and absolutely, protein supplementation throughout the day helps no end, as does knowing when and what sorts of carbs to using throughout the day. Macro nutrition is boring but crucial in protecting yourself from catobolism while losing fat.
I'm tall too so i only do slow, low impact cardio to protect my joints.
As for caffeine and ephedra, I go and off using these, I'm not particularly stim sensitive so i should use them more, my only issue is i find eph makes me fidgety and stops me wanting to do PE, which i obviously avoid.