Sounds just like the rash dd2 had when she was just tiny. They were like big sores/patches that would bleed and they felt weird, kind of leathery. We tried everything and the thing that cleared it up very quickly was a combination of pawpaw ointment with sudocream on top. I think putting the barrier cream over the top of something soothing did the trick.

Oh.. And not using wipes! I tried organic wipes but they were bad too. Flannels were too rough, so I just used wet tissues. Mind you, we're talking a newborn here who was oozing poo all the time hence the rash :/ There was lots of applications of creams I can tell you!