I was diagnosed Type II in 1998, and over the next few years my skin went from normal/oily to dry. I've been seeing the podiatrist and community nurses on a regular basis for years, and tried all of their suggestions, but couldn't get rid of it. Then I saw a different podiatrist, who suggested trying Emulsifying Ointment rather than the lotion, and for the first time in years, the rhino skin is beginning to disappear. It's been so bad for so long, it will take a while to clear up completely, but at least that light at the end of the tunnel is no longer the headlight of an oncoming train. She said it's a bit like lard in a tub, and that's a very good description, but what the heck - it works for me.
Sorry this sounds a bit like a cheesy advert, but it really is good stuff.
I've been told by many of the professionals I have seen along the road that I have diabetes to thank for the dry skin, ulcers, etc & I'm quite happy to believe them. I just wish I'd met that podiatrist way back when!