Well I found out today (07/08/2010, from our new and fantastic family Dr.) that the bumps on Hayley's neck are molluscum contagiosum (a viral infection of the skin cosed by a member of the pox family). She has had them for well over a year now (they can stay for years or weeks), and they are developing faster then they are healing.
He said that he has read on, and heard form people, treating warts (also caused by a virus, though not pox) with oregano oil (a known anti-microbial; I though, no duh. Light bulb came on). He couldn't remember the dilution rate, but if I called on Thursday he would look up the info and pass it on. I was so excited to know what was causing them, I came home to dig in my essential oil and herb books.
Of course there is not a direct reference to molluscum contagiosum, but there is a section for warts in both. My essential oils book ("The Complete Book of Essential Oils and Aromatherapy" by Valerie Ann Worwood) listed Lemon, Lavender and Cypress for warts and verruca. Then it suggested mixing 10 drops lemon and 5 drops cypress in 2 teaspoons of cider vinegar making sure to only get the mixture on the infected area, twice a day. I decided to play with the recipe (I don't have all the oils she mentioned and I know replacement oils).
In 2 teaspoons of raw apple cider vinegar I added 10 drops lavender, 2 drops tea tree and 5 drops oregano oil. I'll apply the mix twice a day, using q-tip. I will update on how it is working.