Baby shampoo is meant to deal with cradle cap, it's an oily condition, and needs a strong shampoo to deal with it. Baby shampoo will not sting eyes like many of the shampoos of the past, and so people thought it was gentle, but it isn't. There are lots of great shampoos for dogs that smell good, have the right pH, and don't sting eyes. Email the Biogroom company and ask for some samples, they will send you some great shampoos for free.
http://www.biogroom.com/