I've had the embarrassing problem of nostril sores for the past couple of months. Mine is largely due to the Iressa pills perhaps. Prior to the nostril blisters, I've had some very nasty outbreaks of blisters on my back neck, and upper lip (trust me, this makes me almost unwilling to go out in public)
One thing I've pointed out to my chemo doc is that my sores tend to appear around hair folicles. She agreed and said that what I was enduring was sort of an infection. Therefore, I usually have a regular prescription on hand of antibiotics.
Trust me when I say I sympathize. Right now I'm sporting a couple of spots around my eyebrows and chin, but the most annoying spot is inside the nostril. It's uncomfortable and weird. There's been at least three of these in the past month in either nostril.
I'm sure there's an evolutionary answer as to why humans have nostril hair, but for my situation it's a follicle place for an infection to happen. This may or may not be your case exactly.
Sometimes even without the benefit of an antibiotic, these things like acne, just dry up eventually and disappear for me. However, on a positive note, I am no longer alarmed anymore when I suddenly have a bump on my body. Anywhere on the body that there's a possibility of human hair (this can even be more embarrassing than nostril hair)I can have an acne like bump.
Here's hoping that it might be all there is for you as well and it clears up as rapidly as it does for me.
Jen