Well first of all, rowing machine cardio isent gonna put alot of muscle on, its just not high enough intensity to make any muscle gains, besides, you will be in a calorie deflict anyways. And about that, it is possible gaining muscle while dieting, but very hard (though its easier for someone who is a beginner to weightlifting, and with 10 years off, you could consider yourself a beginner in a way)
About lifting to faliure. I never lift to faliure, and without a spotter i dont think its a good idea. But lift to near faliure, the last rep on the last set should be very tough, and should be very near faliure.
The link wgr provided is a good one, full body routines are good. Your goal is weight loss, so some cardio on the off days might be good too. I would start off with 3 days a week weights and 2 days a week cardio, and then see how it goes, if its no problem you can increase cardio to 3 days a week. Since your ankle has been busted, maybe someone low impact is a good idea? such as swimming, or a rowing machine.
About your injury.. It could become a problem with lifting, so i suggest seeing your doc before you do this, and stop if there is any pain!
And with weightloss, diet is key! Read around the nutrition section and make a thread there if you got any questiones or you want someone to critique your diet