Prusa i2 ooze

I've been working on a Prusa Mendel i2 for the past few months. I've been having problems with retraction/ooze and was wondering if anyone in the community could give me a few pointers on how to fix this issue. Any help or comment would be truly appreciated.
I have no problems with stringing, but small flakes of filament would collect on the sides of models after retraction, as shown on the attached pictures.
I am using the following configuration for retraction on Slic3r:
The speed for non-print moves is 120 mm/s
Length: 0.72mm
Lift Z: 0
Speed: 30 mm/s
Extra length on restart: 0mm
Minimum travel after retraction: 0.2mm
"Retract on layer change" is checked
"Wipe while retracting" is not checked.
The default retract acceleration on Marlin is 2000.
My nozzle is a J-Head using PLA with cooling.
Thank you to the community for all of your help. I couldn't do this without you.