Thanks for the replies folks, and sorry for the delay in getting back with you. I had to go out of town for a couple of days.
Here is a better picture of what I now think is a head injury. It has changed in shape and size (a little bigger) and it still has these tiny little skin flakes that stick up around it. See the picture in this link:
http://i49.tinypic.com/s13vys.jpg
He's VERY active, feeds easily, and acts normal. The only thing he does do is this movement like he's scratching himself by gripping and rubbing firmly on your hand and he sometime rubs his head on things like he's itching. At first I thought he might need to shed but there are no signs of it, and he gobbled up a pinky tonight when offered to him. I started to think he may have mites so I looked him all over and saw nothing. He's brightly colored and has such TINY scales that I think I'd notice if he had mites. He has a day/night lamp on a timer and a heat pad, but there's a felt pad on the glass bottom of the tank and the substrate is on top of that and are no hot spots in the tank (I have 3 thermometers around the tank and I bought a point and click one to make sure).
So I'm at a loss. He had this when we got him but it was so tiny.... what could it be? We've gotten really attached to this little guy and don't want him to be hurt. Can anyone help?
Here is a pic of his terrarium for ideas.
http://i48.tinypic.com/14xkl1x.jpg
Thanks for the help everyone!