lwfreak,
Took a look and I've had this problem with character elbows and knees.
I attached a fixed version of the project for your reference.
What I do is prebend the joint a little. Sometimes if the bones are on a perfect plane you'll get these twitchy reversal type movements. In your case, I used the JointMove and moved the problem joint a little bit positive on the Y axis, then adjusted the nulls a bit on the Z. Probably not the textbook fix, not sure how the moved joint will effect your model deformation, but the twitch is gone.
Happy LWing!
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