What can i do about a crusty, itchy rash(?) in my ear canal? i read somewhere that the bacteria inside the ear is different than outside on your body.

Ear canal itching: It can be bacterial or fungus may be involved.

Dry skin: Like the rest of the body surface, the skin in the ear canals can get dry, crusty and intensely itchy. I often recommend putting a drop of vegetable oil into the canals about 2x/wk to moisturize the skin. I agree that an infection may also be possible but it would not respond to the application of oil in the ear canals.