A friend of mine has three stepdaughters who bring lice with every time they visit. She told me what her & husband do to deal with it.
1) Shampoo with dog/flea shampoo. Link
2) Coat the hair with Mayonnaise to suffocate the bugs. You have to leave it on for several hours.
3) Comb out all the bugs & eggs. One of those really fine toothed plastic flea combs would probably work.
I know you are dog lover, so maybe you have some of this stuff lying around the house.