I've been on the regimen for 2 weeks (previously on proactiv), and my skin is far more dry and peeling than it has ever been before. I had been using the 2.5% BP with proactiv's cleanser for 2 years before I started the regimen, so I don't think it's my skin adjusting to BP. Now when I get out of the shower, I can literally run my nail across my neck and cake the underside of my nail with dead skin. After the BP dries my skin is extremely flaky, and no amount of moisturizer helps it.

This is pretty normal. Even with proactiv users, they still experience flaking. I'm not sure why, but it could proabably have something to do with the amount of BP. With the regimen we apply way more BP than what is recommended with proactiv. You should consider adding in jojoba oil to your regimen if you haven't already. Mixed with moisturizer it really does make a big difference.