Eeek,
@Snapsy - I've got the exact same thing; my skin cannot cope with the adhesive on those clear, shaped dressings.
The happy news is that there are other options, though you might need to chat to a pharmacist to get hold of some depending on what shape your cannula is. When I was in hospital and had a line in, they changed to the cannulas with the wider wings and stuck them on with that cheap surgical tape - you know the stuff, it comes on those little rolls for about £2.50, and you use them to hold lint dressings and such in place.
I found my skin can handle any adhesive on paper or cloth, but the plastic / latex / rubbery type dressings have an adhesive that brings me out like the picture you posted.
You can also "prime" the skin where your next one will go by getting a high-oil moisturiser and keeping that on the skin as much as you can (I used to put some on a cotton pad and tape that next to my skin). Just before you insert your cannula, clean and "degrease" the area with a little toner (LUSH's Tea Tree Water works like a charm for this, plus it's surprisingly cheap) and you should be rash-free for at least a couple of days like that.
A useful tip a friend once gave me for when you do come up in a rash like that is first apply some children's after sun (less harsh when it's directed at children's tender skin) and then some calamine ointment to help cleanse and keep the skin clean while promoting healing.
Hope that clears up, soon - it's miserable <3