J.R.
I just went through this with my 7 month old. Took her in and the doctor prescribe Lotrimin AF (Anti fungual cream-located in the Foot care aisle). We thought it was weird, but that's what the prescription stuff is...an antifungual. It worked wonders...after about two applications, we really could see a difference. We used it twice a day for a week and it cleared up so nicely! We now keep some on hand, just in case :)!!!
As for home remedies, I too, have heard Dial soap... :)
Good luck!