Being diagnosed as a type II diabetic, I am curious to know what foods I should eat. What should I look out for in food labels? Sugar? Carbs? Fats?

All of the above. The best way to get the answer to this dilemma is to have one or two sessions with a registered dietician. There is a wealth of information put out by the american diabetes association, but start with a formal consult and then go from there.
Suger and carbs. Fresh vege's and fruit very little suger and carbs. Protein in medoration.
Easy. Acid free diet: 1-no soda's or beer; 2 sugars very rare (once per week); 3-carbohydrates 1 cup per meal (bread, pasta, rice, potatoes, corn, peas, beans, grits); 4-limit fruit to 1/2 cup servings 1-2 per day; 5. Meat size of palm of hand daily; 6-vegetables all you can eat. Try to eat organic fresh foods and avoid boxed or processed foods for best results www.Medacpc.Com.