Definite scale rot. Treat as directed with newspaper or butcher paper as the substrate and change daily. Raise temps on warm end to 88 to 92 degrees with plenty of fresh water available on the cooler end (not cooler than 82 degrees) and change substrate more than once a day if it becomes wet due to sloshed water from soaking or anything (may want to give/take water a couple times a day to avoid this depending upon how active BP is and how receptive to hands rummaging around the enclosure.
Use neosporin (triple antibiotic ointment) or the Chlorhexidine. Another possible might be an antifungal foot powder, ointment or spray (aggressive action as mentioned but many are just different concentrations and ingredients the same just concentrated different between foot care and feminine care.)
Change should be noticeable after the shed and will give you a good indication of severity of infection in relation to the new underlying scales. Had one case that took long-term care and 3 or 4 sheds to get cleared up completely even though progress was noticeable with each progressive shed. Watch to make certain that sores do not develop and/or open into oozing or bleeding wounds as it would be a sign that it is getting worse instead of better.
Basically just follow all the advice previously given.
Now, as for the cage. Clean it out, load it up and take it to a gas station or tire shop that you're friendly with and use their air chuck for blowing things out. Get the sawdust and sanding dust out as much as possible this way. Then take it home and begin sealing it up. First, fill in any air gaps that may have developed after you've allowed it to dry for a couple of days in the lowest humidity possible. Then apply coats of polyurethane clear sealer in thin coats. Allow each coat to dry completely and use a 180 grit or finer sandpaper to clear any burrs that may develop before applying the next coat. Apply a minimum of 3 coats this way. If you have access to a Low pressure spray gun you can use this effectively as well. Let the cage air out afterwards for at least a week and 2 or 3 weeks will only help to remove any lasting fumes. Also, during this curing time it isn't a bad idea to apply a heat source to simulate the conditions under which your cage will be used. If keeping animals at 86 degrees, apply heat up to 96 degrees just for good measure.
Be sure that air circulation will be possible even after the cage is put into use, not only for the animals but for any residual fumes that may still be lurking. U may have been in a new home with brand new cabinetry and noticed that even a month after being installed, with nobody living in the home, that the cabinets sometimes still have a lingering odor about them from the finishes commonly used. Same thing applies here and regular/steady ventilation will assist in the total dissipation of these fumes.
If I can be of any assistance, especially with the cage issue since UR using wood, don't hesitate to drop me an e-mail or a PM on here. BTW, for everyone's future reference, when choosing woods for caging, avoid Cedar like the plague, pine like a cold or the flu, avoid particle board and unlaminated melamine...lean more heavily towards maple, birch and other hard woods. Think of the woodland areas where you might herp hunt and the trees associated with these areas. Also, think of the amount of glues and other chemicals involved in the processes used to produce some composite wood products as these linger undetectable to us but can cause severe (and sometimes fatal) reactions to our animals.