That's a myth. Recent - independent, not billion-dollar-diet-book-industry funded - research has shown the effect of the "Atkins" (South Beach, Low Carb, Blah Blah) diets to fuel the rapid weight loss from the strain put on the metabolism by the protein overkill, not the lack of carbohydrates or any other of the reasoning Dr. Atkins has been using. He made a correct observation, but came up with all-wrong explanations. Ketosis is just a way to ruin your kidneys faster - and it actually puts the brakes on your physical capabilities since, like it or not, the human body is primarily a carbohydrate burner. There are no tricks to make it run on fat alone whilst maintaining a remotely comparable amount of power - if anyone had come up with one, then the world of endurance sports would have had another revolution (after the one in the 1960s when it was discovered that it was the pasta that made the italian cyclists so much better, whilst everyone else still thought that Steak Power was the right thing).
Have carbs, exercise lots, burn fat. Most effective, and most healthy.