I have redness and rough skin around the bottom of nose and upper lip too! I use a nasal pillow just like the one your described. I have been using C-PAP for many years. I have tried many masks that simply did not work for me so I stuck with the nasal pillow. I use various brands of baby diaper rash creams. Very small amount is used. I look for natural brands. If I consistent it does help but sometimes I am too tired at night to fool with it. During the day I use Neutrogena Hydro Boost gel cream for extra dry skin with hyaluronic acid. It will burn when I first put it on for about 10 minutes. After that the redness looks alot better. They also make a night time cream that I have used in the mornings as well.