Cincydavid, I'm no determatologist but used to be a barber. That looks exactley like irritation from going against the grain or getting too close. My dad was a baber also and used to do the old style straight edge shaves. The few times I had one done, I got the same exact rash.
If I were you, I'd lay off shaving for a week, then cut it down with a clipper and if you want the bald look do it with an electric razor.
The few times, I shaved with a razor, I got pretty bad rashes also, but since I have started doing it with the Conair Cleanhead, it gets just as close with no irritation and rash. However, the rash also has acne mixed in with it, so I would lay off the shaving for at least a week.
Having said all that, still see your dermatologist for a real expert opinion. However, I would say 99.9% it is a bad rash with acne, nothing more. The best cure is to let it heal and leave it alone, right now shaving it will only make it worse.