We tried the olive oil, massage oil, sorbeline, ect. You name it we tried it. Then i was told about EGOZITE cradle cap lotion. Ok it is a bit stronger and you do have to be a bit careful with it. You pop it in their hair, on the cradle cap, says just the crusts but we got callums head a little and there was no problem, and do it twice a day for 3-5 days. Now her hair will look oily, but this stuff is great. Does not rub off onto anything. After the 3-5 days wash out as normal and using a baby brush, or just a face cloth when you wash her hair the crusts should come off over the next couple of days. Callum did not have alot of hair so his was really noticable, but a baby in my mums group had heaps and she used it to. We both swear by it.
I got if freom my chemist, and it costs around $10. Hope this helps.
Jodie, mum to callum-10.8.05 & matthew-1.03.07