CONGRATS!!! on the loss so far.
You can't spot reduce. Crunches will only tone up the abs UNDER all the "fat". Just keep at it,and the fat part will start to come off. Sometimes for me it seems that I lose it all in the top half first and the middle to bottom half are the last to have it fall off from.
I have been working out steady for 2 1/2 years now (mainly to stay where I am at) and I found good results from Jillian MIchaels ripped in 30 DVD. And more recently I did tapout XT program and my waist is the smallest EVER! and I can even start to see a faint V in my stomach. I just turned 40 a few weeks ago, and NEVER thought I would be in this kind of shape. I have 2 boys 8 and 6!
Hang in there.