Bigcountry,
Check around at some other posts here. I know I've seen other discussions, some with pictures. If I'm not mistaken, osage likes the dry heat better than steam, like you said. Some guys will take mineral oil and soak the wood in the area they're heating. This helps the heat get into the wood more evenly. Then (depending on how bad the twist is) clamp the bow in a vise and get a cresent wrench on the limb with the twist. Hang weights off the wrench to twist the limb back to straight, then let it cool there.
Do you have any pictures of the twist?
Joe