bearsh - 2010-02-09

the version of xsetwacom installed by xf86-input-wacom (0.10.x) doesn't seem to be compatible with your rotate-wacom.sh script.
following script works for me:

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#!/bin/sh                             
export LANG=C
find_stylus () {
        $xsetwacom --list dev | sed -e 's/ *\([^ ]* *\)$//'
}                                                          
test "$ACTION" = "rotated" || exit 0
xsetwacom="`which xsetwacom`" || exit 0
xinput="`which xinput`" || exit 0
case "$ORIENTATION" in
        n*) rotate=NONE ;;
        r*) rotate=CW ;;
        l*) rotate=CCW ;;
        i*) rotate=HALF ;;
        *)  exit 1 ;;
esac
devname="`find_stylus`"
if [ "$devname" ]; then
        find_stylus \
        | while read name; do
                $xsetwacom --set "$name" rotate "$rotate"
        done
else
        echo "Wacom Stylus not found." >&2
fi
exit 0

this and up-to-date ebuild can also be found in my overlay http://bitbucket.org/bearsh/bearshoverlay/src/3891ce4adf60/app-misc/ (fjbtndrv and kernel module fjbtndrvkmod)

cheers
bearsh