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I'm more worried about getting tone and burning fat than I am with gaining size, more than anything I want to burn off some of this belly fat, my arms aren't exactly small, they just aren't where they were when I was still in the Army.
Spot reduction of fat is a myth. Your body chooses where it stores and loses fat, and that varies from person to person. If you want to lose fat in a particular area, you have to lose fat all over. Unfortunately, the areas one wants to reduce fat in are typically the ones that are fatter due to your genetics, so a substantial weight loss may be required.
You should also be aware that 'tone' is a garbage term.
http://en.wikipedia.org/wiki/Toning_exercises
You'll note that 'tone' is simply a result of how much mass you have as opposed to how much fat you have. If you want to 'tone' your body you have to reduce your bodyfat % overall, which is hindered by your goal of gaining some mass, as putting on fat during mass gain is inevitable and raising that percentage is highly likely. The problem is that you seem to want to do everything at once; having abs while putting mass on your arms, toning your body while building a nice chest (which, again, requires more mass). In other words:
You want to lose fat while you're gaining mass.
It's possible. But it's going to take you a LOT longer than if you went through a proper bulk/cut cycle. Furthermore, even though your main priority is to lose fat, performing the 'cut' part of the cycle would get you nowhere. You'd be left with abs but no chest or arm mass, and gaining that mass back would take a very long time unless you went on a bulk cycle... Then, once you've bulked, surprise, you no longer have abs and need to cut again.
However, once you have bulked and THEN cut, you are left with your desired muscle mass as well as your ideal bodyfat levels, which is why cutting first is pointless. If any of your priorities are to gain any mass at all, a bulk/cut cycle is ideal for you.