Cradle cap isn't harmful and our pedi told us that if it really bothers you, you can use a soft brush to brush the scalp. She said that if it hasn't gone away by the time DD is 1 years old (which is highly unlikely) then we can use head and shoulders to help it. It's already almost gone after a couple weeks and I didn't do anything, not even brush it with a soft brush.
I used Burt's Bees Baby Oil, I just rubbed it in and let it sit for 15 minutes then gently brushed his head for about another 15. It's totally gone now.
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Re: cradle cap
I used baby oil - went away in the first use
I use baby oil, as well. I let it sit in his hair for a few minutes, lightly exfoliate w/ a baby brush, then wash it out.