What to do if I am obese but I want to gain muscle as well. I don't want to be looking like skinny bone jones. Would I just look fat still if I gain muscle?

Lift weights. While working on a healthy diet that is rich in vegetables, protein and healthy fats, be sure you're getting the right kind of exercise to keep your muscles strong. Brisk walking or other cardio is great, but you should also add some weight lifting. Please start slow and use light weights to start. Get some guidance from a personal trainer, if possible, before doing it on your own. Best wishes!