I have the same problem which had me read everything I could, including comparing my rash to pictures. It looks identical to rashes casued by Pseudomonas aeruginosa, a microorganism/bacteria which casues folliculitis.
http://crutchfielddermatology.com/tr...bfolliculitis/

It's hard to get rid of from your pool, is usually casued by not enough sanitizer in the pool, and is more common in hot tubs because of the higher temps in the water. In my case, I found that my CYA is way high 200+ and that keeping a FC level of 2-4 basically renders the chlorine useless and allows bacteria to grow. My water is crystal clear so I couldn't for the life of me figure out what the problem might be - this forum has been a great help.

This forum suggested a chart to base the FC level on the CYA level, so in my case, instead of a normal CYA of 30-50 and then a FC level of 1-3 or 2-4, I end up having to raise my free chlorine level to 8-12ppm to have the same sanitizing effect as a lower FC would have with lower CYA values.

If your situation is anything like mine, I'd check the CYA (Cyanuric Acid) level and adjust the Free Chlorine level up if the CYA is high. The FC vs CYA chart is in this thread: http://www.poolforum.com/pf2/showthread.php?t=365
In case you're wondering if it's hazardous with that high of an FC level - posters have explained to me that since the high CYA neutralizes, or makes the chlorine weak, the higher level of FC is the same as a lower FC with lower CYA.

HTH
Matz