"I've used the Iodine twice since i got it on my affected areas (scalp, side of nose and eyebrow) it's actually irritated it a bit... does that mean i should stop using it?"
I would not give up on iodine, instead reduce the Iodine to 2 drops in 1 ounce of water from the 4 drops originally. Let us know how that works.
The 4 drops in 1 ounce of water does miracles for dandruff.
If this doesn't work for you, there are several additional excellent testimonials to try out here: http://tinyurl.com/Iodine-Candida