It definitely sounds like baby acne. My understanding is it usually begins about 3-4 wks after birth (when the mommy hormones start dissipating from the infant's body) and can continue up to about 6 mos. The best thing I found for it was bathing every other day, using a baby exfoliator to slough the dead skin cells off (as the acne heals it becomes crusty, itchy and pulls at the healthy skin), and if it really bothers you, a little bit of cortisone - baby cortisone (0.05%) if you can get it. I couldn't find it here but when I used to live in a Louisville I was able to get it there. Remember tho that cortisone is a steroid product and thus will thin the skin so you don't want to use a whole lot of it or over a large area of skin or as a longterm solution. Contact your pediatrician for further information. Continue using dreft and sure - why not trying to wash your clothes in it too? If my son touched anything washed in anything other than dreft he would break out horribly. Also, remember that formula fed babies will hold onto the acne longer as they aren't getting the immunity and antibacterial properties in breastmilk.
Above all, however, remember that it doesn't bother baby much; certainly not as much it bothers their mommies. Your beautiful baby will be remembered as such - and the memory of the acne will fade until you completely forget they ever had it.