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http://blogs.webmd.com/healthy-children/2006/02/got-lice.html
- Recommends using a Cetaphil-containing lotion in place of the usual deadly chemical-bomb shampoo approach. The stuff smells bad, particularly after it's been baked with a hair dryer, but not as bad as the no-doubt-toxic chemical stuff you get at the pharmacy.
I recommend washing any sheets/pillowcases you sleep on while this stuff is in your hair, not just running them through the dryer. See above about horrid smells.
Yes, I know there are all-natural ways to deal with this. No, I've never tried them and ghu willing I won't ever have to. No, I'm not advocating anyone take any particular approach. You do what works for you. Last time we used the hardcore chemicals and no hair-cutting. It was a lot of work and stress. This time we're hoping for less stress. Next time we might just take off and nuke the place from orbit - it's the only way to be sure.
Just thinking about this makes my scalp itch.