how long and howmuch do youhave to lift before that muscle starts burning the fat and losing more then 1-2 pounds a week?

you are always burning fat.. it's just that at first you are gaining muscle fairly quick.. you will look more tone and more healthy... but your weight won't change much on the scale... as for when it starts to balance out, that depends on the person.. how much weight they already have, what they eat, their current metabolism and shape as well as what type of workout they are doing. at a guess, i'd say if you haven't started to lose weight at the end of 2 months, then you should probably change up your workout a little. also, having more muscle helps speed up your metabolism.. so even if you stop trying to gain muscle and just start doing cardio.. the muscle you have built up will make weight loss easier.

You don't lose weight by weight lifting actually you gain more weight but muscle

Yes, that seems logical because muscle weighs more than fat, so once the muscle is increased, it will burn more fat just to sustain itself. I'm not sure how much one must lift though.

Well, you lose fat and build muscle at the same time. Your fat loss will show up after a week. Then, as you build muscle, your weight might increase.