Dr. ATkins wrote that exercise is "non-negotiable" during his diet. You should begin on Day 1.
I think alot of folks believe that they need to run 2 miles and work out for 3 hours at the gym and if they can't do those things on Day 1, they wait until they can. Not so, Dr. Atkins has a section in the book of exercise/activities that burn 100 calories or so.
Walking around the block is exercise.
Walking up and down stairs is exercise.
Mowing the lawn is exercise.
Any activity above your normal level is considered exercise, so there is no excuse not to exercise beginning on Day 1. Even if you are in a wheelchair or confined to bed, you can do stretches for those body parts that aren't immobilized.