Just spent too much time figuring this out (or rather, figuring out that I can't find a better solution to a seemingly trivial problem), so I thought I would share this. If you have a better (more general) solution I would loove to hear it:

How to create the digits for an analog clock:

1. Create a circle
2. Create digits by either:
a) Create digits one by one
b) Create a string of digits, apply your formating/editing of your choice to them and then split them using placeonpath extension (http://sites.google.com/site/placeonpath/).
3. Turn the circle into a path
4. Select all the nodes of the circle path (ctl-a when in mode) and insert additional nodes from the nodes toolbar.
5. Select Snap item rotation center and snap smooth nodes in the snap toolbar.
6. Snap the digits rotation centers to the circles nodes one by one.