Possible allergy have you used any new clothes, detergent , creams on him , bathing gels etc ..behind his knees could indicate something he sits on ..There does seem to be an epidemic of rashes sounding similar, google to find out if there is any news about any virus .
I have a question, does he wake up with them? you say "bites" and the first thing in my mind, is (well we are having an epidemic of it here in VT) is maybe some how they are bed bugs... not to sound gross.. here in Vt they are coming into people homes from brand new furniture, bedding and they are carried in on people persona' belongings.. just a thought that is why I asked if he wakes up with them it could be anything... have you brought him to his doctors?
Bites? As in, an insect? Or pinprick like spots? Look up some of the online medical sites like Mayo Clinic's site and look up rash, child. Impetigo, the aftermath of Fifth Disease, prickly heat, a lot of things can look like you are describing. Most of the good medical sites have photos, and you might be able to narrow things down.