My 1month-old has tiny red acne all over his face, scalp & his ear lobes and few in his body. Dry skin is flaking off his ear lobes and scalp. Help!?

Normal. That is what is known as milia. It is his skins reaction to the fact that for 9 months of being under water. It will have a tendency to come and go for several months. As to the dry skin, it sounds like cradle cap. Any oil, from baby oil to olive oil, will help to moisturize his skin.
It will pass. A baby floating in the slick moist environment of the womb will have pristine skin at birth.Between 2 wks and 2 months, more than half of infants will have transient baby acne triggered by the hormones that came across during pregnancy.Keeping it clean allows it to run its course. If any sites are more inflamed or persistent, your doc should evaluate. It should fade completely by 3 mo.