Hi Mark and Gina,
You really need to pay a visit to the doctor. I can't tell you exactly what kind of Mite has infested your child, but it doesn't seem like a good thing.
We solved the mystery...it's bird mites. It appears that when young birds leave the nest there is nothing to feed on so they migrate into the house. According to the University of Madison, they only live a few days & the best remedy is to remove the source (the old nest). Thanks for the help & quick response.
Mark & Gina
Update from Barry M. OConnor (05/23/2006)
Mites on newborn's head (6/21/05). Another Ornithonyssus. This is a parasitic mite in the family Macronyssidae, genus Ornithonyssus. These are the most common "bird" or "rodent" mites you mention. These are similar to the Ophionyssus mentioned above in living in the nest material and feeding on the host blood. Ornithonyssus sylviarum (the Northern fowl mite), O. bursa (the tropical fowl mite) and O. bacoti (the tropical rat mite) all occur in California; the first two are parasites of a wide variety of birds, the last parasitizes rodents, commonly commensal rats. All readily bite people when the normal host is no longer around. The remedy is to locate the bird nest or get rid of the rat problem.