Regarding the skin, when it's really dry outside I use a moisturizing body wash AND an in-shower (or after-shower, but in-shower seems to save time) body lotion. Sometimes the moisturizing body wash is enough. At home, I use a soap-free body wash I got from bath & body works which really seems to dry out my skin less than regular soap, and I scrub my face regularly with an apricot scrub (followed by some facial lotion after I get out).

Also, shower and get your hair wet before you put your cap on, it will protect it from drying out (kind of acts as a barrier). Rinse hair with chlorine shampoo (you can find ultra swim in a lot of drugstores, but others are better), then use regular conditioner.

I think you got some good advice with the suits. Sierra Trading Post also has older model suits that I keep an eye out for (I am picky and prefer the Speedo racerback style suits).

I have avoided masters swim, so I'll be interested to see how it goes for you. It's taken me a couple of years to figure out that I won't be last out of the water, and masters swim seems to short out that connector in my brain for some reason and I go back to thinking I'll be the slowest person there.