Really nice post, rpm.

For your 3bet bluff range -- personally, against someone nitty like that, I usually end up 3betting them mercilessly. I'll 3bet with all kinds of trash that isn't in my calling range -- Ax, Kx, nearly anything suited.

His stats are so tight because he is relying on the fact that his LP steals are +EV in a vacuum, and you are taking that away from him (ie, he rarely opens in EP/MP, but opens a ton in LP). Now he is forced to adjust or he's just handing money over to you. How will he adjust?

1) Open a tighter LP range -- you win, because now you will get more uncontested attempts to isolate limpers and steal the blinds without the CO interfering.
2) Widen his 3bet call range -- you still win, because he's playing a weak range OOP in a 3bet pot. You will often take down the pot with a small cbet and you're still playing hands that can at least flop some kind of equity. Plus, since he's nitty, he probably won't be bloating the pot OOP unless he has a very strong hand, so you'll be able to control the size of the pot pretty easily when you want to see a showdown.
3) Widen his 4bet range -- this one is a bit tougher, because you'll need to estimate how much he is widening it and with what type of hands, then adjust your 3bet value range accordingly. But bad players will often really screw this adjustment up and start stacking off with surprisingly weak hands because they don't understand that you are folding your bluffing range when they start 4betting.

Bottom line -- at worst, you force the CO to stop stealing your button. At best, you force the CO into crappy situations that are far outside his normal comfort/expertise zones.

A little math -- if the CO steals with 33% of his hands, and you 3bet him with your bluffing range you listed (which is 5% of hands), and you end up in the BTN vs. CO situation once every 9 hands (I'm assuming FR, obviously), then you only end up bluffing him once out of every (3*9/.05) = 540 hands. If the EV of the pure bluff is +2.5bb (1.25ptbb), that amounts to an additional .23 ptbb/100. Not bad, but you can get a lot more by bluffing a much wider range and then taking advantage of his bad play when he adjusts badly.