Start exercise slow. The important thing is that you're doing it.
You need to change your diet, but not drastically. There are forumlas for calculating your calorie needs and BMI and BMR on the web, do a google. Remeber to eat well. This does not mean starving yourself, that does more harm than good. Exercise regualarly, but take it easy at first as you're getting back into shape.
Although fad diets come and go and work and don't work to a certain degree, there's one easy method that always works. Eat better and exercise more.
These are the biggest tips I can lend:
Set reasonable goals; small successes are better than big failures. The 2-3 lbs a week I mentioned in the title is if you're dieting pretty seriously... any faster than that is unhealthy. It will take time, but you will see results. Your goal needs to be long term and for health, not short term and for vanity. If you're serious about losing 35 pounds, it's a lifestyle change. You won't lose it in 3 months, but you will easily over two years if you can commit to the change. It seems like a long time, but you need to remember that you're doing something that will affect the rest of your life.
Buy this book:
http://www.amazon.com/exec/obidos/tg/detail/-/0764551264/qid=1087691607/sr=8-2/ref=sr_8_xs_ap_i2_xgl14/002-0028797-4435224?v=glance&s=books&n=507846(Dieting for Dummies, ISBN: 0764551264)
Good Luck!