there is a name for it, but i can't remember what it is called...

people often get it when they withdraw from ice / crystal meth / methamphetamine...

but people get it aside from that as well.

um... this might sound silly, but i have something a little bit similar (perhaps) where i feel really really really really really itchy and i will scratch myself raw sometimes while i'm trying to get off to sleep. i'm sure it is partly psychosomatic (same with the bug thing).

what seems to help a little is moisturing. i get body butter from the body shop because it is a really intense moisturiser and my nightly ritual is to really rub it into my skin. seems to help. probably helps a little because the itching is partly due to dryness. could be worth a try for you...