Kalni--I've never posted to you before, and how funny that when I do it's on the topic of head lice!!! I'm a school nurse, and sadly that makes me a bit of an expert on the subject.
Yes, the chemicals can be toxic, but they're definitely where I'd start if I were you. Be sure you get something permethrin or pyrethrin based (unless they have really serious plant allergies). Follow the directions. The next day/evening, coat their hair with fabric softener, cover with a shower cap, leave on for ~30-45 minutes, and rinse out--that should unglue the nits. Comb thru with a nit comb. Meanwhile...vacuum their bedrooms very thoroughly, as well as any upholstered furniture. Wash everything that has come in contact with their hair--hats, jackets, bedclothes, backpacks--in hot water and dry in the dryer. Bag up all the stuffed animals they've had contact with in trash bags for 2 weeks--don't need to throw them away, but that will cover the life span of any lice on them and then they can make a triumphant return after 14 days. Honestly, if you're diligent about all this, it should be quite effective. If they return--and they do tend to make the rounds at school--olive oil is a good method for repeat infestations--let them sleep overnight if possible with olive oil on their hair, comb thru with a nit comb, and wash out. Don't use baby oil or petroleum jelly--it's less effective and much harder to wash out. And--heaven forbid--with each infestation, you have to do the cleaning/vacuuming/laundering/bagging up process again.
I am not so effective at DB'ing, it seems, but head lice I can handle.
M60 H52 D20 M14 yrs OW-old gf from 1986 bomb-5/18/08 H filed for D-9/10/08 D final 4/24/09 xH remarried (not OW) 2012