It happens.... It's a shame, but there are plenty of people that seem to have a reaction lanolin. Fortunately, there are plenty of alternatives out there that do a great job too.
I like lanolin, but have used a cream (Musgo Real) that I found irritating. I wouldn't jump to the conclusion that lanolin was the problem until you tried something else that had it -- Institute Karite or Omega, perhaps. You said to say it wasn't so! ::angelic004