Seborrheic Dermatits on Scalp

I went to a local doctor and he said the scaling and flaking yellow material on my scalp was most likely caused by seborrheic dermatitis.  He recommended I use T-gel shampoo one day then Nizoral shampoo the next day and just alternate back and forth like that.  After a couple weeks I am not at all convinced it getting better, but we'll see.

I feel like my hair is thinning in the area I have this problem as well.  Is there a link between seborrheic dermatitis and hair loss?  Will this hair ever grow back?  I am very embarrassed to go out in public when I haven't washed my hair recently because the longer between washes the more flakes start showing up. And I wash it every day.  

Any advice to get rid of this, keep my hair, keep from stressin out?  Thank you