Oooh, sorry about your scar, mama. 7 weeks in and mine's still a little sticky in places but seems to be settling down. I kept it super dry with a prefold stuffed against it, which I think helped it stay clean and heal.
I've heard several people recommend using probiotics to clear up nasty rashes on small babies - just open up a capsule and dust the powder on. Haven't tried it yet so can't recommend it, but might be worth a try. I've also got one other suggestion that probably won't be terribly popular: we've had to switch to sposies as it was the only way we could keep DD's diaper rash away. I was having to change her CD every hour and she was still all red and sore. We're planning to experiment with different types of soaker pads when I have time, as I can't bear using sposies long term, but at the moment I seriously don't have the time (I have a huge pile of stuff I just need to sew that I look at longingly every day during feeding marathons) and huggies are keeping her rash-free. Whodathunkit?
Hope you're both feeling better soon.