I have a difficult time with compliments, too, hugs and I also lost a lot of weight over the last year. I think about how I feel when I give people complements - I want people to accept them. So, now, if people pay me complements, I say "thank you" because I know they don't want me to disagree with them on their complement. And sometimes...it feels really nice!
I've lost 16 pounds over 22 months, and 4 inches off my waist. Today I was surprised to meet a second cousin who complimented me on my weight loss, and she introduced her children and nanny. I mumbled something about not recognizing her out of context, to cloud the embarassing fact that I rarely go out anyway, and couldn't recognize her.
What was great was that I accepted the compliment, showing I'd changed something about me. In the past, I think I would have trouble accepting a compliment. I felt a lot better afterwards too, since that comment was a reminder of my hard work and respect for myself.