Thanks heaps guys. What great ideas for me and anyone else reading this thread.

I am just so excited to say (haha what a loser I am!!) that we have definite improvement! But you know what I think helped the most, was that yesterday she didn't do a poo (actually probably for a day and a half now) so her little bot could have rest..thankgoodness.
I also spoke to a GP and he said to try 1% hydrocortisone cream a couple times a day, so we have been doing that too. Oh and I also gave her (probably not the best thing to do I know but I was desperate) a very weak salt bath and that seemed to help the crusty part of it and seemed to get rid of the superficial weeping that some bits had (probably was a little infection I'd say, but very mild).

So anyway, her cute little toosh is returning to it's pink little self!