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Hi aug817,
My skin got worse after I started taz. All the little blackheads, skin coloured bumps (I think these are whiteheads), and perhaps some milia raised their angry heads. It seemed way worse because instead of them coming out slowly when they were ready, there just seemed to be colonies of them being exposed. This calmed down significantly after 5 weeks or so. I think week three-five was the worst - but didn't really stop completely until 4 months (sad truth). HOWEVER - there was substantial improvement by three months. Hang in there.
As for the dryness, my skin probably got the most noticeably dry after two or three weeks. The first week for me wasn't bad. I did find it made me shiny in the morning sometimes with the cream formula, but after I washed my face it was tight and peely. Just because you haven't started peeling yet, I wouldn't apply more - you can really damage your skin. For me, I find I peel the worst after 3 days of application. So I do three days on, *peel*, two days off. I try to do every other day, but if my skin isn't reacting, it's hard to resist using it.
Just because your skin isn't visibly peeling like mine did doesn't mean it isn't working - the fact that all your non-inflammatory stuff is coming up probably means some exfoliation is happening. I tend toward dry skin anyway, so it could have just been that that made it worse! Don't wish for the peel - it caused me some heartbreak for sure. If you think acne is embarrassing, try acne with a good portion of your cheeks flaking off 
I guess only time will tell. Three months feels like forever...I know.
What type of taz are you using? cream or gel and what percentage? Sometimes people with oilier skin do better with the gel, though it is much stronger I find.
Hang in there 
