Hey, MikePylon, This is pretty much what my doctor told me. One question I have for you (or maybe your doctor rather the next time you see him) is why does he think it's likely to start in the upper middle of the lip? I ask because That's EXACTLY where mine started before it "spread" (you can look through my posts for pics/ treatments). I don't blame people for thinking it's a fungus because it does appear to spread, but after a few rounds of heavy anti-fungals, I ruled that out. I'm almost positive mine was caused by a chemical irritant/allergy from a mouthwash/toothpaste (it's so hard to narrow down). I used it for nearly two years! Anyway, my doctors theory seemed to be: Whatever you're doing to irritate the lips causes inflammation which then triggers the scaling/ peeling. So, my strategy for the past 4 months or so has been to apply Protopic twice a day and moisturize between. The condition has improved and stabilized at least (no more crusts but some buildup in the morning). Anyway it's at least manageable. good luck with your treatment! I think you're on the right path.