Hamster dry skin hair loss

My daughter just got a hamster a week ago. From the store I have noticed some hair loss but thought it wasn't a big deal. The store owner said it would grow. But now we are not sure. We have notice more dry and flaky skins where the hair loss is. We are not sure what it is. Allergy or mites? Please see the pictures at:

http://picasaweb.google.com/deer421/200902?authkey=pfPP2dKhCIc&feat=directlink

What should we do? Thank you for your advice. We appreciate it.

[Aleda M Cheng, D.V.M., C.V.A]

Thank you for posting the photograph.  He is adorable!

He really needs to be examined by a vet, who can try to identify whether the hair loss is due to ringworm, mites or bacterial pyoderma (bacterial skin infection), or something else.  For example, if it turns out to be ringworm you may have to shampoo him often with medicated anti-fungal shampoo;  mites can be treated with Revolution topical medication.