Thanks, PP. I have spent a lot of time trying to figure this thing out and I am starting to think that he has a bad case of "cercarial dermatitis," which he contracted during a Columbus Day weekend trip to Cape Henlopen state park in Delaware. I found a CDC article about an outbreak in the early 1990s and the conditions in the bay were the same. Low tide, calm water, sunny/warm temperatures in October. Plus, the only areas that are affected are where his skin was exposed - lower legs and lower arms. The rest of him was covered with swim trunks and a rash shirt, and he has no bumps on his face, back, or neck and only one on his chest. He spent almost 2 days playing in the bay water near the fishing pier - he was collecting "sea critters" and playing with a number of other kids - and I didn't get in the water (which is why I don't have anything).
Here's the article:
http://www.cdc.gov/mmwr/preview/mmwrhtml/00016486.htm
I emailed his doctor, and I called the nature center at the park. I would love to know if others who were in the water that weekend have the same thing, but not sure where to post or whom to call. There were a number of kids playing in the bay, and a few fishermen standing in the waters. There were other adults in kayaks.