I had heard that you could, and my friend's kid has it. Can she wash it out with baby shampoo?

yes you can, put a small ammount on some cotton wool along with some water and use it that way

I have heard of this, but it just doesn't seem like a good idea. Your eyes need moisture, and washing it out with soap will just irritate your delicate eye tissue. Get some drops at the drugstore (over the counter) designed for use in the eye. They're only a couple dollars.