K.G.
My 3 year old has similar symptoms. This is going to sound weird, but it really works for us. I have stopped using all laundry soap. I use baking soda and vinegar in the wash. I do not use dryer sheets, as they are irritating to him, too. If the clothes are particularly smelly (daddy's workout clothes, little guy wet the bed, etc), I put in about 1 tsp of Dawn dishsoap. It really works.
I miss the "clean" smell of clothes, but we don't have to deal with any itching or bleeding any more. Also, both of my boys sleep better now, too!