In this paper we study DM that is consistent with all **data** including the preliminary PAMELA electron measurement, most recent FERMI electron plus positron measurements and the preliminary diffuse γ measurements. We then make predictions for the additional FERMI diffuse γ ray measurements and the future PAMELA positron fraction. In fig. 1 we demonstrate a sample good fit of the PAMELA and FERMI **data** and its prediction for the ICS spectrum that is an outcome of our analysis. The ICS flux in this example is representative of most models that fit PAMELA, FERMI and HESS. This paper is organized as follows. In Section 2 we describe the various final states in our DM calculations. We relate these final states to various models of DM including annihilating, decaying, and long lived intermediate particles. In Section 3 we outline the calculation for the contribution to the diffuse gamma ray background from ICS and synchrotron. We point out certain relations between the calculation of ICS and diffusion and bring up certain issues not discussed previously in the literature. We discuss a semi-analytic approximation to Inverse Compton scattering that illuminates some basic physical features. The reader might want to jump directly to Section 4, where we fit the various models to the existing cosmic ray data, identifying the parameter space viable for explaining PAMELA after the recent FERMI and HESS results. In view of the strong restrictions we make precise predictions for the upcoming diffuse gamma ray measurement by FERMI and comment on whether this will be a sufficient measurement to test the DM explanation. In the appendices, we describe some of the details of our approach to calculating neutrino fluxes and fitting procedure.