. Sometimes even breast cancer or hodgins disease may present with enlarged axillary lymph nodes.
It would he helpful if you could describe the rash as to the appearance and any history of allergies and any other associated symptoms present. You wife should use an antibacterial soap, avoid deodorant / cosmetics and wear loose fitting clothes.
Since it is impossible to diagnose skin conditions without actually able to examine the patient, I suggest that you consult a dermatologist who can determine the cause and prescribe appropriate treatment for it.
Regards.