As of kernel 3.2 you should not need LTWC at all. The wheel should switch to the native mode automatically when it's connected and your dmesg log suggests that it really happens.
I can't test this at the moment, but because of the way LTWC sets the wheel up, it's possible that it's fighting with the kernel driver over the wheel which leads to an invalid /dev/input/G27event entry.
I suggest you try this: Remove the LTWC entry from udev rules, plug the wheel in, let it calibrate, run
echo 500 > /sys/module/hid_logitech/drivers/hid:logitech/0003:046D:C29B.xxxx/range
(the "xxxx" value might change, you can read the current value from dmesg)
and try the fftest again.