The midwife I talked to said that alcohol was bad and that it was an old practice. wierd how they all have their own ways I guess.
I used some umm gosh I forget the name of it... some sort of herbal antibacterial powder that I was given for it. It stains but worked wonders. DD's fell off at about a week (a little early, it got caught on something), and then was bleeding/scabbing off and on for about a week. So at about 2 weeks or so it was gone and healed and perfect. Wish I could recall what that powder was. I have used it with both of my daughters and its made an obvious visual difference in how well they've healed and stayed dry.
I gave DD her first sponge bath at about 3-4 days PP (she was born at home so that really was her first) and then the next at about 2 weeks. We dont bathe her unless her hair gets oily, which is a bout every week to week and a half so far. (she has a lot of dark brown straight hair)