One of my best trans friends, Arianna, had many similar problems. She was completely covered in thick black hair, had huge problems with hair shadows when she was first starting, plus she's 6'2" tall, overweight, wears a size-13 shoe, and has a deep voice.
After only 2 years on hormones, she was passing almost perfectly, she had her SRS in the summer of 2009, and is now living pretty much in stealth. You'll be surprised just how much hormones and a long haircut can change you, especially if you're young. And HRT does help with the hair. Arianna still has quite a bit of it, but it's softened now, so it's not really as noticeable. She just looks like a woman with really coarse leg hair.
Also, losing weight isn't that difficult. I was 270 lbs when I started hormones. I went on the paleo diet, and I dropped all the way to 230 after only about 3 months. Now I'm down to 220, even after months and months of cheating.
This is all quite possible. No matter how male you may think your starting position is. I think you'll be surprised how many people end up passing and in stealth who never thought it was even remotely possible.