Arrgg...I just typed a long reply, and then lost it!
Sorry, have to be brief. yes, you do need to reduce your insulin. I would speak to your Dr about the insulin that you are on. Basal bolus may gie you more flexibility in what you eat. I am not sure about Ultratard, as it isn't something I have used for many years, and I am sure there is a good reason why you are using it...but it doesn't allow you to be flexible with your diet.
Personally, I need that flexibility...it is heart breaking, as you know, to be "good" all day, just to have to fill up on sugar because you are hypo. Basal bolus regimes allow you far more flexibility. You also need to carb count with this...but for someone who is on a calrorie controlled diet (like you and me!!) this is nothing new.
i am doing weight watchers...only been on it for 3 weeks, but so far, so good. I now have a pump, so if I don't eat much, or just have salad etc, I don't need much insulin...if I have a potatoe or something, I need more, I take more. carb counting, and working out your carbohydrate to insulin ratio is teh key.
It isn't perfect...I still get a few hypos, but not a 2 bottle of lucazade hypo!
all the best