Awww, I am so sorry to hear about your sweet baby's paws being so raw and irritated

That must really hurt the poor little guy.
I just recently bought this stuff called Pulvex - it is a Soothing Antiseptic All Purpose Veterinary Ointment and it says on the tin that it is wonderful for dry, cracked skin and paws. It might be a good idea to pick some of this up for your little guy
I got it at a local doggie boutique here in town. It look's exactly like a square tin of Bag Balm, only this tin is red. It's a huge tin of it - 9 ounces and you don't need very much, it will last you FOREVER. I paid $6.50 for it
P.S. - If you can't find this exact stuff, Wal-Mart carries Bag Balm in the pet section (it's on the dog aisle) and it will probably work just as good