Both my 8 and 10 year old have eczema and extremely dry skin. A couple years ago my 10 year old, Z got a bad rash all over his body. He was miserable, couldn't sleep, got sent home from school, couldn't concentrate he was just so uncomfortable. It was horrible and we felt so helpless trying to make his as comfortable as possible. He went to doctors and a skin specialist and was on several different creams. At that time I started studying more than ever about dry skin and eczema and we changed the way we treat their skin. His rash did finally clear up and luckily with the changes we made he has not had another serious flare up.
Soap: Right now we are using Kiss my Face olive oil and aloe. It doesn't seem drying at all and doesn't make anyone in the house itch like so many other soaps do.
We also like Grandpa's Oatmeal Soap!
Sometimes the kids don't use soap at all they just wash with a little olive oil. Oil breaks up dirt and oil without drying the skin.
Around the house:
Make sure bedding and clothing are washed in the gentlest liquid possible. Use of fabric softeners often irritate dry skin. Watch for skin allergies. It turned out my sons stomach had the worse rash because he was allergic to the metal on his pants and belt. He now wears a long undershirt and tucks it in to create a barrier between his and his jeans since he didn't want to wear elastic pants forever. :)
Watch out for scented products, perfumes, deodorants, try to find more natural alternatives.
Avoid over washing!
Be as gentle as possible on your skin and hair.
Keep as much as possible covered in the cold and wind!
Any other ideas you can think of, LET ME KNOW! I'd love to hear how you deal with dry skin and skin problems!!!