I've heard that the (infection?) spreads from the inside of your body after the initial contact and spread caused by scratching, etc.

It's not an infection, it's an alergic reaction to the oil from the plant on your skin. Contrary to popular belief it doesn't spread from the area of contact unless you spread the oil around by rubbing, clothing etc. That's why it is important to wash the areas as soon as possible with something that will remove the oil, not spread it. Tec-Nu is one product I recommend. They also have a product that you apply to your arms and legs before hand as a shield.

Some people can be overly sensitive to the chemical and develop systemic alergy symptoms. They should see a doctor.

For the itch, topical or oral antihistamines (benadril) can be used.

-Hal