Tonight, I found a cluster of 'black dirt' on my orange tabby cat. I saw a black bug climbing through it so I shaved the area and it turned out there was a LOT of 'black dirt' with a few bugs crawling around through it. Not knowing what to do (I have a 6 month old daughter that's been laying on the carpet) I shaved the cats entire back (he was strangely calm through out that whole process) to get rid of all the dirt looking stuff. I haven't noticed him scratching and he is an indoor cat. Both my cats got out for a little while today and Im assuming that's when he picked up these bugs. They don't jump but they are hard to kill. Immediately after I shaved his back I put him in a warm bath and shampooed him with cat shampoo and scrubbed and scrubbed for 20 minutes. I've never had to deal with fleas so Im not sure if that's what they are. They covered his entire back and when I put him in the tub I found them everywhere on him. So now he, the other cat, and the dog are quarantined in the basement until I can figure out what this is and how to treat it. Any one have any ideas or suggestions??

Sounds like you might have a flea problem.

Maggie-I forgot to mention that when I shaved his back, it looked very irritated. You could tell where the bugs had been hanging out. There is a red streak all down his back and the skin around it looks fine

Oh no.. I've heard fleas are a handful. What do I do to make my home safe for my baby? My husband and I just noticed this tonight and It doesn't seem like this has been bothering my cat in the days past...

You will need to treat the cats and the environment for fleas.
A good test is to take the "dirt" and wet it, flea dirt will turn a red/orange color.
But odds are from your description, fleas is what you have.
Only use a vet approved product on the cats like Frontline or Advantage, it will be more expensive, but it is safer and more effective.
DO NOT use the cheap products you can pick up in the department store and grocery, cats have sensitive systems and can react badly to the chemicals in those products.
You will also need to treat carpets, furniture etc. wash all bedding and anything that the cat sleeps on.
You can purchase flea treating powders at your vets office to treat the carpets etc.
If you can afford it you could have an exterminator come in and treat the house and yard.
But if you do that, call around first, most pesticide companies will offer a guarantee if they don't solve the problem the first time.