Both sugar and starchy carbohydrates will raise your BG. And whilst low sugar is not necessarily bad (e.g. adding 20g sugar to weatabix won't make you feel any fuller but still has extra carbs and calories) it won't really improve control. There should be courses offered to cover this - DAFNE et al.
As for what you should eat, I think you'll find advocates for two very different approaches: The traditional approach is 200g carbs per day with appropriate insulin, 2000 calories - the stuff they put on all food labels - and the low carb camp recommends less than 30g carbs a day (Bernstein's Diabetes Solution).
I follow the traditional approach since my nutritionist explicitly told me not to eat a low carb diet when I asked her about low carb.