I had EXACTLY the same situation on mine, but my wife's Pazzo's fit perfectly. Go figure.
Anyway, the levers have a little more meat than the stockers at the pivot point, and they end up being closer to the inner panels than stock levers. There is a fix, and you may not want to hear it.
I tried to shift the switch housings and bar around, but it still hit. I didn't want Helibars, Genmars, Converti-bars, or any other gizmos. I like my bars where they are, thank you. I was not about to go back to stock, so I played around with the adjustment cam in the Pazzo levers. Long story short, you can get the ADJUSTER lever to stop hitting by flipping the cam. Be aware that the cam profile is really designed to work one way, so this fix isn't the best, but it works.
If the lever of the body hits, the fix is actually simple...Sort of. You need to do a couple of things here, and if you get lucky, you'll be done in about 10 minutes. You need to remove the inner panels and get to the innermost push rivets and the JIS screw (there are no Philips screws on your bike, they are JIS screws-use the right tool!) under the upper inner panel, nearest the gauge pod. Get on in there, and see if you can manipulate the inner covers to sit more flush, replace everything and test it out. If you are lucky (some people just are), the lever will clear the inner cover. If not, I suggest that you gird your loins for a cowl wrestling match.
Pull the lower cowl on the offending side, and the inner panels, and you may, or may not need to yank the wind screen. Once you have access to the upper cowl's mounting hardware, loosen the fasteners, and pull/push the cowl forward gently. Snug up the hardware, and install the upper inner covers and test. Don't panic, it's a hit-or-miss adjustment. You may be better off yanking both lower panels, and leaving the upper cowl on. That method exposes EVERYTHING that the upper cowl mounts to, and lets you visualize exactly where you need to move the cowl. Bear in mind that you won't have tons of adjustment with the cowl, but for every incremental move you make on the cowl, you are also adjusting where the inner panels will end up.
It sounds like a lot of labor just to get a pair of levers to fit. Trust me, once they line up perfectly, you'll love your Pazzo levers, and curse the sadistic engineers at Suzuki.
I'm sorry it my description is confusing. If anybody has any questions, PM me. If I have the time when I get back from my upcoming road trip, I'll try and post up a better explanation of my fix, with photos.