I have had this condition for five years now. I don't have too much of a problem with my lips cracking but I do have a problem with redness that won't go away. It is above my upper lip and looks like a little moustache, just not as noticable.
I have candida albicans and am a vegan so I already am really careful about what I eat. I have a strict yeast free diet because I believe this condition is caused 100% by yeast. The only time I ever get lip cracking is after eating foods such as vinigar or soy sauce both which contain yeast and are fermented. The cure for lip cracking is really simple and 100% effective. I put monistat cream on the sores at night and by the next morning they are completely gone. Monistat is a yeast infection treatment and comes with cream for infections of the skin. It can be bought at any drugstore. Do try it, it always works and the cure is immediate. My cracking is minor because of my diet but the most you would ever probably need to use the cream is two nights. If it is really bad put it on in the morning as well.
As for the redness, the dish lotion treatment did lessen it for me. I also use a combination of an antibacterial lotion, such as non steriod Fucidin cream and Canstan for ten days applying it four times a day. It does work and the redness becomes virtually unnoticable but if I eat any yeast containing or causing food ( fermented foods, alcohol based foods or those containing addictives with yeast like citric acid ) it just comes back. So I guess what I have learnt is that this condition can be treated but it requires commitment to a totally healthy Diet and lifestyle and a completley yeast free diet.
Good luck and please do try the monistat cream. It really works.