Hey D.,
What you could try is anti-bacterial cream/gel. The kind you put on a cut, burn, etc, when the skin is inflamed. You can put it under your nose, everywhere, it really helps the skin heal.
I have the same problem, if I put even the best lotion on it, such as vitiman e, it burns like heck. The anti-bacterial gel helps the dryness, itching, etc. And it doesn't burn!
Buy a store brand, such as Walmarts "equate", it's the same stuff as the name brand (ingredient wise).
And while you are at it, take a multi-vitiman (store brand, just as good)if you aren't already. And yes, try to drink more water! =)
Hope this helps, I have skin issues too =)!
R.