Not all carbs are "evil" when you are diabetic. In fact, not all carbs are created equal. There are some that cause a big jump in blood glucose very quickly, and there are others that are slower digesting that do not impact your blood glucose as much. These foods are categorized in what has become known as The Glycemic Index. The following website gives a table of various carbohydrate foods and their respective Glycemic Index (GI) number. The higher the GI number, the more readily your body breaks it down and causes an increase in blood glucose levels.
You can get books and charts that give values for a wider variety of food, so you can enjoy the things you like in small amounts and make the healthiest choices possible among a given type of food.
The main difference between type 1 and type 2 diabetes is the body's ability to produce or utilize its own insulin. In type 1 diabetes, the person does not produce insulin, and the person needs to take insulin injections in order to manage the illness. In type 2 diabetes, the person does produce insulin, but their body has developed a resistance to the insulin it produces. In some cases, insulin levels are actually higher than normal, but the body cannot and does not utilize the insulin it produces.
There has been some research in the last 5 years or so that speculates that there may be as many as 8 or 10 different "types" of diabetes. The research is trying to ascertain the exact root cause of insulin resistance in the insulin resistant types - and there are many different factors that can influence insulin resistance, including being overweight, hormone imbalances, sedentary lifestyle, heredity, and so on.