I just read a hub on it, I *think* it was Ghost32 who wrote it. Pretty certain. I can't remember what he titled it, but it was something about little monsters so it's a matter of browsing a bit. That's the first I'd ever heard of it -- sounds like pretty creepy/nasty stuffs.
I have seen a news feature of Morgellons disease a year ago. The report said that the person afflicted have skin rashes, believe that there is/are creepy crawling insects underneath the skin, and feel constant biting and tingling sensations. They symptoms are similar to Lyme disease. Morgellons was described as a "mysterious skin disorder" and still being studied for causes and treatments. No definite cure yet, but doctors are advising patients to go on a mental-health-therapy, as it is seen by some doctors as a delusional parasitosis.