Its not a hormone rash is it? Jesse had it quite bad, and also being he was born around the same time of year (warmer weather), he had a bit of a heat rash mixed in. So once the pimples had gone his skin looked the same. He had is all through his hair, over his face and neck.

Have a look at these photos:
Hormone Rash
Heat Rash After Pimples

My poor baby lost his hair at the same time as you can see in the last photo.. looked like a little old man going through puberty! hehe

I just rubbed in sorbelene to the dry skin. Not much else you can do apart from just waiting for it to clear. Doesnt effect bubs what so ever.

Best of luck.