I found a product called Mustela Foaming baby shampoo whilst living in NZ, it was fantastic and since using it every person who has borrowed or bought their own has not had a problem with Cradle cap. I unfortunately tried the oils/combing etc with my daughter until she was 3 months old then found this shampoo and within no time it had cleared up. I used it on my son from birth and never saw a speck of cradle cap. I have reccommended this to so many people and have had excellent results from all my friends who have used it. I even had a friends son who had the worst cradle cap (smelly also) that had been there for a few months slowly getting worse and after only a week or so of using the shampoo it cleared up and has never come back.

Oils work for some but I found this a really nice shampoo to use anyway, with the bonus of preventing cradle cap.

It is in the Mustela range of baby products. Foaming baby shampoo, helps to prevent and clear cradle cap. Not sure of exact phrase on the bottle but it is a round container which has a clear lid and it comes out in a foam.

I am in Melbourne and was able to get it from a pharmacy in Camberwell, have since heard that it is available at other pharmacies but may have to be ordered in. Retailed for $14.95 when I purchased it as a gift for a friend in Oct last year.

Good luck clearing it up
Heidi