Side effects to inflammation may include temporary
hair loss. If severe outbreaks are untreated for extended intervals, permanent
hair loss may result, because of damage to hair follicles.
You need to use medicated shampoos containing coal tar, ciclopiroxolamine ketoconazole, selenium sulfide, or zinc pyrithione. For the acne, you can apply Benzoyl peroxide 4% on the lesions.
ref:http://en.wikipedia.org/wiki/Seborrhoeic_dermatitis
ref:http://www.webmd.