Just noticed your post! I can thoroughly recommend this diet as it worked for me and is really easy to stick to (once you get over your carb cravings!). Yes, there is carbohydrate in cereal - it's essentiall ALL carbohydrate - so that's out. I tend to have things like scrambled eggs, bacon, cheese omlette etc for breakfast. Takes a bit more time to prepare, but really fills you up. And if you cut out the carbs, you will lose weight - and gain health and energy. For a helpful guide about the diet (what to eat and what to avoid) this website is really good
http://www.dietdoctor.com/lchf
Good luck!