As a man that was once as heavy as 430lbs, but now much lighter, I can tell you that Paleo works.
There are a few things I would suggest, and this last time around I've incorporated them into my own plan with some great success.
First - Log your intake through fitday, cronometer.com, or PaleoTracker. This allows you to see "Oh, I weigh X pounds more today, and day before yesterday I ate Y". It also helps you keep your calories in check. I find it useful as well when I get any sort of gastric upset, I can look back and see exactly what triggered it. By this same token I strongly suggest you keep your carbs low initially, under 10% or so of your daily intake... as you progress you can try a little more carbs.
Second - Be aware of binge impulses, and avoid even the "Paleo" foods that you eat that trigger binges (for example, I no longer eat nuts besides as an occasional salad topping, and I rarely eat Plantains anymore). If you are anything like I am, starches might trigger you to overeat. Anyone can eat a pound of potatoes in one sitting, but it takes a bit more to eat that much pot roast.
Third - Get outside and get plenty of sunlight. Your body needs to repair itself, and it sounds like you are well on your way given the improved sleep and other things. The extra vitamin D from sunlight will improve your mood which will help your quality of life, and it plays a bigger part than most people understand.
Four - I understand that you have a broken foot, but this works out well for the purpose of exercise. Too many people see a stall and then add insult to injury by being excessive in their play and gym. I suggest you clear off some space in your floor, work on flexibility and maybe some yoga. Take it small, 20min at a time, and gradually improve your mobility and flexibility. As your foot heals, you will be able to get outside and get some real playtime in, taking advantage of this newfound flexibility. As far as the sedentary job goes, try and make sure you are getting a standing-break every hour or so, just to stand and stretch. I am a IT engineer, so I might spend 12 hours a day sitting at a desk. I do my best to get up on a regular basis, even with my headset on (conference call hell), and stretch my legs. I also sit on an exercise ball at work, but I don't suggest this until your foot is healed.
Good luck! It's a hard journey, and it's not as short as say, surgery, but it does work. With these little "hacks" I feel you will be well on your way.