Many people here report that Pegasys gives them dry skin. No doubt this is often true because Pegasys has a GIGANTIC range of side-effects.
But I wanted to call attention to something else Pegasys does which could be confused with dry skin. Pegasys is a recombinant alpha interferon (IFN-α) and as such it's an immune-system modulator that cranks up the immune system. Consequently it makes many autoimmune conditions WORSE.
When I started Pegasys for my PCV I noticed a huge increase in dandruff. It was like a blizzard and I had to bin my dark clothing. Many cases of dandruff are really seborrheic dermatitis, AKA seborrhea, which is an autoimmune condition in which our immune systems over-react to naturally occurring dermatologic flora, e.g., fungi that we all have living on our skin. When you see huge flakes of skin floating off you or enveloping your shoulders it's natural to assume your skin is "dry" and start slathering on moisturisers.
But it may sometimes be more effective to recognise it as seborrheic dermatitis and treat it aggressively as such. I've found that a shampoo combining an antifungal, Ketoconazole, with a cortisone to suppress the inflammation works a treat, although it must be religiously used.
BTW Pegasys also aggravates psoriasis and eczema for the same reason. I can't wait for this winter, which is my psoriasis season 8-( .