Charlie was on Daktaren gel for ages too (his mouth and my nipples seemed to have constant thrush in the early months....) and he always did very numerous & very runny liquid poos whilst Daktaren was in his system. But he was never distressed at all, nor did he ever get nappy rash.
I asked about it at his 2 month check up and my GP and the MCHN both said it was to be expected and to just keep BF'ing, and they still gave him his needles no probs.
I asked if there was another product that would reduce the effects, but they both indicated that Daktaren was simply the best, and that they didn't recomment anything else.
Rachael, I got a bit worried about one set of needles for jenna - she was a bit sniffy.
they told me that babies have to be almost dying (you know whtat I mean - not actually dying of course ) before they dont give them needles.
Certainly mention it to the nurse though, and keep some barrier cream on that little botty to keep it nice and dry.
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