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.