bleeding, cracking and peeling fingers and hands

My 13 year old son has had cracking, peeling and bleeding hands and fingers for several months now.  It seems to be worse when he is in school.  We have treated with every kind of OTC we can find, he has taken different prescription meds with the thought that it was some kind of fungal infection.  Someone recently told me that they had this as a child and they were allergic to wood and wood products.  So pencil and paper during school time made it worse.  We are currently painting with "new skin" every morning prior to school so he won't get blood all over himself during the day.

[National Jewish Health]

This sounds like a form of hand dermatitis, called dyshydrotic eczema.  Usually this is related to contact with allergens or irritants, such as soap.  Infection, especially with fungal organisms, can cause a similar picture as you suggest in your note.  Topical steroid ointments or emollients are commonly used to treat this condition.  Vinyl gloves should be worn whenever possible.  You son may have to be seen by a dermatologist.