Dan, just wondering why you think being in ketosis means you are burning any bodyfat at all ?. It will only involve bodyfat if you've used up the dietary fat. It's considerably more difficult biochemically to access bodyfat than just use available dietary fat. In the context of restricted carbs, if you are consuming more dietary fat energy than you are expending, bodyfat will just stay put- in a 'net' sense of course, I take it there is bodyfat going in and out of adipocytes all the time.
Also does anyone know how protein that is isn't needed for building/repair purposes is converted to bodyfat or used for energy ?. Is it converted to glucose first, or perhaps slotted into the Krebs Cycle (or some other energy pathway, Citric acid cycle?) in some other form ?. I thought actual gluconeogenesis only occurs on as needed basis, ie. when carb intake is insufficient to supply glucose dependent tissues.