I replaced the twisted forward sneak walk tail animation with the backward sneak walk tail animation, this fixes the twist issue.
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After finding an article about this problem someone posted, and realizing I hated this bug too, as I play argonian allmost exclusively, I spent a whole day researching just knowing I could fix this with blender. Then I came to find out the tools I needed to import nif files into blender were outdated and did not support Skyrim. Tisk tisk! DX
About a week and a half later, after poking at the game a bit half heartedly I realized that the backward sneak animation would work beautifully for the forward walk, since it looks a bit like a tense quiet sneak posture to me. So here it is! Looks 10x better than breaking your tail off when you sneak eh? Just merge the contents of this zip file with your Skyrim data folder, and your done.