There's loads of interesting stuff on saturated fat coming out in recent studies, much of which is casting doubt on the conventional stance that sat fat is "bad". And more broadly, reviews of the older literature aren't finding significant links between sat fat and CHD; at worst it seems to be relatively benign, whereas some studies are showing links between certain saturated fatty acids and improved markers for coronary health (increased HDL, decrease in small, dense LDL and increase in large, "fluffy" LDL, decrease in VLDL etc.)
The "Track Your Plaque" program in the US has a lot of good information on this, well worth a read. There are also plenty of anecdotes of people improving their lipid profiles on high sat-fat low carb diets, some posted here (and I'll include myself; HDL rose significantly on a high sat-fat diet while LDL and trigs stayed low; blood pressure dropped enough that I've come off lisinopril). Whether the improvements are due to eating more fat, eating less carbohydrate, a combination of the two, or some other factor isn't as easy to pin down, but it certainly doesn't seem that sat fat is causing any problems in these people.
sue, if you find you don't tolerate fat well then of course you need to bear that firmly in mind; only you know what your body can deal with. However, you do need to eat something; there's a limit to how much protein you can safely ingest, which only leaves carbs and fat as the alternatives (or alcohol I guess!) I suppose it becomes a balancing act between higher carbs and the subsequent effect on blood sugar control vs. higher fats and whatever issues you face with those.
