I've been on .05% Tretinoin for about a month now, little longer. It's working great. I had flaking very early on, but only for a day or two and nothing since. The only kind of skin irritation I get is some reddness, and only rarely. I wash with Cetaphil in the morning, Neutrogena Daily Scrub (or something--it has microbeads) in the evening, after work; then Cetaphil again at night. I wait 20 to 30 mins then put on the Tretinoin.
Personally, I'd rather see some flaking, so I know the outer layers of skin are shedding off likey they're supposed to. The Cetaphil really helps moisturize the skin. I tried using regular old soap one day, and my skin was red for two days.
During the day I'll use the Neutrogena on the spot stuff, the 2.5% BP. It makes my skin a little red these days, but, otherwise, I'll get very oily about 4 hours after washing. So, the BP is not negating the Tretinoin, as far as I can tell.