I haven't experienced the puffly nipple thing, but I do know that love handles are really common, and are often the last fat to leave the body on a lot of guys. I know I'm that way. You probably need to change your diet a LOT and exercise a LOT.
I basically lost mine over a 2 month period (Nov and Dec) when I watched what I ate, lifted 3 times per week and ran outside 5 miles each day. NO days off in November (even ran on Thanksgiving) and only 4 days off in December. Also, I'd occasionally do 15 or 20 minutes on my treadmill during a different time of day. I'm not saying this is a good way to go about losing love handles but it did work. The point is that for some of us it requires almost drastic effort to lose them, even after all other fat is gone. It requires pretty much a lifestyle change in my opinion. I wouldn't be surprised that if you were able to lose your love handles, that the fat around your nipples would disappear too.
Side bends or exercises that work the obliques won't make any difference in getting rid of your love handles. In fact, it may make them worse because the muscle you build on the obliques will just push the fat out more.
Clean diet,
weight training (squats, deadlifts,
bench press) & cardio (even though that's usually frowned on here) over a period of a few months and I bet you'd look a lot better. I agree with a previous poster: 178 lbs. for your height is way overweight unless you've been hitting the iron for quite a while. You can expect to have extra fat at that weight, no way around it.