[Cha Cha]

If I were dealing with this problem, I would ask my vet if Shapley's M-T-G could be used. It is a product most comonly used by horsemen, but it is also labeled for dogs. I have used it with great results on horses for stubborn skin conditions including fungus. Even though it is labeled for dogs, I would still consult my vet before trying it. (I have had it on my skin too and it does not burn like alcohol and tree tee oil can.)

Here is what the website says:
Original M-T-G has been providing quick and effective relief from numerous skin ailments since 1938! Originally formulated for humans, this safe and easy to use product is the only one needed for relief from a variety of bacterial and fungal skin problems, such as : • Rain Rot • Scratches • Girth Itch • Sweet Itch • Dry Skin • Tail/Mane Rubbing Original M-T-G provides results after just one application! Formulated to eliminate the causative agent creating the skin problem, it conditions the skin and hair around the damaged area, promoting both healthy skin and maximum hair growth. In fact, Original M-T-G has proven to work exceptionally well promoting hair growth. Users report up to 3 inches of new growth on manes and tails in a single month. Original M-T-G creates a healthy environment for the hair follicle, resulting in maximum growth while keeping the length of the hair shaft soft and pliable for minimum breakage. Original M-T-G is a time-tested, user-supported solution to both skin healing and hair growth in a single bottle. An oil-based product that does not require washing or water for application, it is not only easy to use, but great for cold weather. Original M-T-G is also safe and effective on dogs and other animals’ skin problems, such as hot spots, itching and dry skin. Original M-T-G is available in 32 oz. and 6 oz. bottles. Suggested Retail Price: 32 oz.$20.95, 6 oz. $7.95