I had another idea. You may have already done this, but...
have you painted the skin weights for the forearm to have less influence from the ulna joint? Less influence may help stop the wringing look.
As far as skinning the lattice, I have always applied the lattice to object then select the lattice and joint then skin. So you are skinning the lattice not the object itself.
The post 2 threads up may help too.
hope this helps.
doug