I was told by someone that Nicotine can actually hinder success on a low-carb diet do to the nicotine affecting insulin levels. Has anyone heard this? And if so I would love to read any other info.

Yes, indeed. Along with all the other negative effects that smoking can cause, insulin resistance is part of the package.
Dr. Atkins also mentions in his book that smoking can slow weight loss due to the fact that it interferes with Vitamin C absorption and use by the body.
If you do a google search of smoking and insulin resistance, you'll come up with quite a few hits; here's a few to get you started:

http://diabetes.niddk.nih.gov/dm/pu...ulinresistance/
http://www.thorne.com/altmedrev/ful...insulin5-2.html

I very much appreciate the info. Thanks so much!
I will visit these sites. I love new knowledge and today is day 1 kicking the habit cold turkey! I want to get the nicotine out of my system. I feel I will do ok. I slowly took my self down to a very small amount.
Peace!