I think I fixed it.. I went to remove my Twitter account, but I saw Sync as an option. Once I hit that it seems like it's working. I haven't seen any Twitter notifications or anyone I'm following on Twitter show up yet though.
I have the same issue. I removed it and readded it and its still says setting up even if I restar a sync. I have notofication updates on my phone for twitter, but not getting them in my contact list, even tho I have selected the option