Hi, Teriwyn: Unfortunately, I know exactly how frustrating this situation is. We've been dealing with Binx's spots for about 4 months now. Here's a link to a recent thread I started, to bring you up to speed:
Of course, always rule out ringworm, but I've been told that the fungus usually doesn't have scabs. Your little guy's problem sounds more like allergies. But, always consult a vet just to be sure!
I did my own research, since the vet just kept telling me to watch it and put Animax on it.
From what I found, they might be hot spots due to allergies. The allergies can be caused by anything from fleas to dust mites to foods. So, we treated the boys with Frontline Plus, and noticed that cut down a lot on the itching and licking, but did not stop it.
Then, I read that for the hot spots, you should trim or shave the hair from around the scabs to make sure they get enough air to dry out. You don't want them to stay moist. Clean the wounds with a mild cleanser (I used Johnson&Johnson baby soap on the localized area), then rinse thoroughly. Then dry as much as you can with a towel and you can apply something like Animax if you want, but I didn't because the wet feeling makes Binx lick more. Finally, to reduce itch in the hot spots, use a cool wet cloth as a compress for a few minutes twice a day until you see a reduction in itching. After it has reduced, I just use the compress if I catch him licking or itching the spots. He stops after I take the compress off (on about 30 seconds) and lightly scratch around the area a little just to let him know that I know it's a problem for him.
After following these steps, the little guy's spots are finally healing up after 4 months of being constant wounds on his shoulders and back! I really hope this helps you. If not, check with your vet about getting a Cortizone shot--we don't like doing that unless absolutely the last straw.
Good luck! I hope your furbaby is better soon!