did you ever recover from hair loss from TE?
It just dawned on me. If you have any open sores on your scalp maybe it's best that you DON'T use the Nizoral because it might sting and cause more irritation. You would be better off using the Head & Shoulders shampoo. It WILL get rid of the itch.
PS - Try NOT to itch your head. I had to try like crazy not itch my scalp when I was going through the TE.
It sounds to me like you have a scalp infection. I know you don't want to go to the doctor because of having no insurance - what a shame about the insurance :-(
There is a shampoo that you can buy at drugstores, but at Wal-Mart I am sure it's cheaper. It is called Nizoral (I think this is the name. I will have to double check somewhere). I've read that it is a very drying shampoo, so maybe you could use it once or twice a week, not an everyday shampoo. It is also kind of expensive (maybe $12, I'm guessing). Anyway, if you can't tolerate the Nizoral try using Head & Shoulders.
Two years ago I suffered from a bout of TE (telogen effluvium) which is some itching and dreaded hair loss. I used Head & Shoulders and the itching went away in about a week of using the shampoo. It didn't stop the hair loss, but it sure stopped the itching.
You asked about vitamins - I took Biotin when I went through the bout of TE. You can find that in the vitamin isle at Wal-Mart.
I am going through another bout of hair loss right now, but I don't have the itching and I still use the Head & Shoulders.
I hope this helped :-)