Both of my last 2 bubs have had this dry, flaky skin problem. I used either a natural massage oil or lotion and this seemed to help with the dryness. The skin just has to go through a few renewal phases to fully shake the flakes, so to speak, and then you'll find beautiful healthy skin appears within a couple of weeks. It does seem to get really bad there for a while, but it's just the skin renewing itself.

I used these products and found them all to be great: Aromababy lotion and massage oil, Gaia massage oil, moisturiser and bath wash, and Natural Instincts. The last two brands are easily purchased at your local chemist...the aromababy i bought online. I found the oils really nourishing and the bubs love the massage they get while ur applying it