Consider an arachidonic acid sensitivity... among other things, it causes dry and flaky patches of skin. AA is found in egg yolks and red meat. I don't recall it being mentioned in Atkins; you will probably have better luck getting the lowdown at the Protein Power subforum since the Drs. Eades mention it in their book.

I recently cut out eggs and cut way back on red meat (as did a friend of mine) and we both have seen a vast improvement in our dry skin issues.