Sazza, I'm using it as well, and find it soothing rather than anything else. I use a squeezy bottle with a nozzle, left on the radiator for half an hour, to apply it to partings, massage in and leave it for just half an hour just before using a paraben free shampoo called Desert Essence to take it out.
Sounds very distressing for both of you. Would your daughter let you dab a little on the inside of her arm to see if she reacts there? Perhaps she was just too sore yesterday for anything at all. If she's prone to reactions it might be a good idea to do a patch test of any new product.
Good luck.