Scaly, dry looking skin anywhere else other than the top of their head could be eczema. And babies who have cradle cap + eczema have a much harder time getting rid of the cradle cap.
You might want to ask your pedi. We ended up having to change LO's soap to the Aveeno oatmeal soap, plus use only baby eczema lotion on him, and use prescriptive cortisone cream for flare-up areas. Additionally, we've had to have him tested for allergies, as he's had skin reactions (hives, eczema flares, etc.) to other things.