Congratulations, D.! I know how frustrating it is to have a beautiful newborn daughter with a terrible rash right before Christmas (i.e. not just needing a photo for the birth announcement, but also knowing that there will be many photos taken for her first Christmas)! My oldest was born November 20 and has very sensitive skin. Yes, all newborns have some "baby acne" due to the major hormone shifts of birth, but some also have skin that is more reactive to environmental irritants.
I recommend that you wash her clothes with Seventh Generation Baby laundry detergent (http://www.seventhgeneration.com/Baby-Laundry-Detergent), which is available at Whole Foods, many traditional grocery stores and even Target; if this isn't a workable option for you, at least use a "Free & Clear" laundry detergent (ALL makes one). Use plain distilled white vinegar instead of liquid fabric softener (yes, there are "natural" and "free & clear" alternatives, but for the money and lack of build-up in your washing machine, you can't beat vinegar); use the same amount you would use of traditional fabric softener...I don't measure it, I just pour it in my washer's auto dispenser, but I'd estimate it's about 1/4 cup. I don't use dryer sheets at all (if you don't overdry your clothes, there isn't usually a static problem, and the clothes will already be soft from the cleaner rinse they get with the vinegar), but if you "need" them, be sure to buy unscented/fragrance-free!
For bathing a newborn, often water is all you really need (I like to use de-chlorinated water, but don't stress overly much about this unless your daughter has on-going issues). When a cleanser is needed, California Baby makes a Sensitive Skin version that is a combination shampoo, body & face wash and gentle enough for a newborn's skin. They also make a fragrance-free lotion. We love these products! They are free of irritants and still do a great job of cleansing and moisturizing. (Do make sure you are providing plenty of moisture this time of year. If lotion alone isn't enough, a humidifier may be a worthwhile option depending on the humidity level in your house...it can help with respiratory and skin issues.) I also highly recommend Tropical Traditions Virgin Coconut Oil, which is great for cooking as well as applying directly to skin!
Good luck to you! Relax and enjoy this time as much as possible.