Hiya Kxsx,
To answer your question about whether it's caused by treatment, here's an archived thread with a quote from jmjm, who researched skin problems a lot:
"Just to add a little, many of the skin disorders, especially immune-related conditions like psoriasis are caused/flared by the interferon not the ribavirin.
That doesn't mean "riba"rash doesn't exist, but it does mean not every rash is caused by the riba. Of course, it's possible that the riba could cause skin condition "A" that may morph into psoriasis or something else that then gets aggravated by the peg, but his is just speculation on my part.
What I can be more sure of -- from anecdotal stories on the net, and other readings -- is that both drugs (peg and riba) do cause skin problems in most that treat. And that those with pre-existing skin problems often have the worst time."
http://www.medhelp.org/posts/Hepatitis-C/Riba-Rash-help-needed---jim-are-you-out-there/show/94386
What to do about it is another issue. My own advice would be to get to a doc who can look at it, in order to treat it.
NYG will hopefully be around to give some immediate advice. She's been around for a long time, had skin issues and knows how many things have been tried.
(Other than dry skin, I didn't have the friggin' horrible itch but it can drive you crazy, I'm sure. I sometimes take niacin and that's what it does to me.)