Itchy rash on and around scrotum

Dear Doc.
I am a 32 year old male, married and have not had unprotected sex, (except oral)since our daughter was born Two and a half years ago.
About six weeks ago I woke up to find a lump about the size of a pea at the underside/base of my penis.  I left oit alsone for a couple of days then decided to squeeze it! A yellow waxy sustance(like puss) popped out. A couple of days later true to form... I caught my penis in my fly and ripped the remainder of the lump off, ouch!  I cleaned the wound and topically applied surgical spirits and antiseptic cream.. to aid the cleaning process I shaved my scrotum.  The wound healed but about a week or so later I noticed hundereds of small yellow spots on my penis about 1mm dia, when the scrotum is stretched they elongate to about 3mm in length.  They itch like hell most of the time, especially when walking or jogging, and the scrotum bunches up like a ball of elephant skin!! As if it were cold.  Also on the underside of the penis there is a line of raised skin when flacid.  The penis sometimes aches along it's length.
I applied, for several weeks tea tree oil to the scrotum as I has read this was a good natural antiseptic. The skin on my scrotum began to peel so I gave up on that line of thought.  I have noticed that the spots appear to be at the base of each pubic hair follical some of the pubic follicals just off the scotum in the pubic bone region, both sides, and the both inner thighs have started to become irriated.  They look to contain puss or something, however when squeezed nothing secretes.  I have had itching on my shoulders and armpits but am lead to beleive itching can occur anywhere when another area of the body is aggrivating a person.  I have had no fever, loss of appetite or any other symptoms.  I have also not had sex for about 6 weeks now.  What do you think this could be I do get cold sores could it be Herpes? Molluscum? Exszma ( My brother suffers terribly with this and suriasis my father also suffers from suriasis ) Could it be an STD.. ( It has gone on a long time )  
Follicalitis ( it doesn't look like the images on the web ). I would visit my doctor but he thought I was a hypocondriac when I thought I had a lump inside my testices and don't was to go through embarresment like that again.
Sorry for the indepth report but I thought it might help the diagnosis?
Any suggestions what it might be? what over the counter medication would you suggest?

[Alan Rockoff, MD]

I think you had a clogged pore, and that after you noticed it you started to look very closely at your penis and saw lots of little yellowish cysts that are normal anatomical variants that have been there for years but that you never noticed before b because you never looked that closely.

My advice is to leave the spots on the penis alone, that you resume normal sexual activity if you want to, and that you show a dermatologist or urologist, so you'll know for sure and be able to forget about this matter.

Take care.

Dr. Rockoff