The rash of herpes is not a "huge rash that basically covers [the]entire penis along with spots of small soft warts." That may be eczema, irritation, or something like those. If you haven't seen a doctor yet, where did you get Valtrex? Valtrex is quite safe, but I don't think you should take it if you don't know what you have.
I would avoid sex, minimize any friction, lubricate the area with vaseline or the equivalent, and see the doctor as soon as you can, to clarify the situation and get it under control.
Best.
Dr. Rockoff