I don't think the flab just disappears from arms; it's one of those areas where exercise to build up the muscles - biceps/triceps/deltoids - makes a difference. The good news is that it's one of the first places where you see results. When I started doing resistance exercises, I (and others) noticed the difference in my arms before anywhere else.

Triceps are the ones that clip those bingo wings. You can start doing these exercises with a tin of beans/bottle of water and progress upwards in weight. Generally, you should do 3 sets of 10 repetitions with 30 seconds or so between sets.

Tricep kickbacks - get on all fours, slowly bring one arm up so that your elbow is near your hip and then straighten your arm (holding the weight) so that is straight out to the back. Then slowly bring it back to your hip - keep your elbow high.

Tricep extensions - arms above your head, hold something 'heavy' and bend your arms backwards so that it goes behind your head. Keep your elbows tucked in as you bend them - and in your peripheral vision. Then slowly raise it up again.

Tricep dips - these are the best... but the hardest. However, if you are still losing weight you can take comfort in the fact that these will get easier as you lose more! Sit on the edge of a bench and put your arms behind you - fingers towards the front of the seat. Wiggle yourself off the seat so that your arms are taking your weight and then lower yourself by bending your arms to - and then straighten again to come up. Keep your bum close to the bench. The further out that you put your legs, the harder it will be. You can make it easier to start with by not lifting off the bench but by just gently pushing backwards so that your arms bend (keep those elbows in to work the triceps) and then straightening again. As you get better (or lose lots of kg), put a weight in your lap to keep it challenging. I swear that when I first did dips in a gym class, I managed about two where I moved about an inch and then died. Now, I do them with 10kg in my lap and three risers under my step. Progress is possible!

Biceps - curls are the easiest thing to do. Key thing to remember is to release the arm fully at the bottom of the curl (lengthen to strengthen)- and try to keep your elbow under your shoulder rather than letting it come forwards/backwards.

Deltoids - this is the muscles that comes down from the top of the shoulder to the outside of the arm that looks fabulous when it's toned, giving the arm its shape. Side raises are the easiest way to go here - weight at your waist with your arms at right angles. Raise your arms up to your shoulder height - like you are flapping your wings - and then back down again. Keep your elbow above your wrist as you push your arm upwards. As you get stronger, lengthen your arms as you push them out.

Hope some of those help.