Join Date: Jul 2005
Location: Orange Park, FL
Bikes: Ever changing..as of 2-24-09: 2003 Giant TCR Team Once, Sampson titanium, 1992 Paramount Series 3, 2003 Cervelo P3, 70s Raleigh Record fixed gear, 70s Fuji SL-12 commuter, mid 90s Klein MTB. Plus two or three frames lurking, plus 5 wife/kids rides
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Based on my (sample of one) experience I would disagree with the recommendations that you move them further out. I like to ride in a similar position to yours, with my arms almost in 90 degree "Slowtwitch approved" bends. I find that the closer to my elbows I can get the pads, the more I can just lean on them as opposed to having to pull up on the aero bar ends.
As far as solving your pain problem, I suggest just fiddling: try changing your hand position, which will change the position of your forearm bones and the resultant pressure on nerves. Move the pads inward a bit, outward a bit, rotate or angle the bars upward to relieve some of the wrist bend..you'll find something comfortable.