Long duration low intensity exercise is what you want for fatburn. then some kind of resistance training every now and then helps because your muscles will use fat to rebuild and replenish themselves. This is assuming you want to lose only fat weight and not muscle weight as well. And then again a lot of it depends on your diet, all the exercise in the world aint worth crap if dient isn't good.
Not true. HIIT has proven to be vastly superior in shifting bodyfat to steady state cardio. The old idea of 60-75% MHR for fat burning is simply no longer a valid or defendable theory.
Also, muscles in NO WAY can use stored adipose tissue to rebuild themselves. Bodyfat contains NO amino acids. It breaks down into blood sugar, so is stored energy only, so cannot, in any way anabolise muscle tissue.