EarlyWorm one more aspect of that “do not affect color,” is that if you do not turn in on then it bakes in the gamma value you have set into the image. In your method however, I reckon, turning that switch off doesn’t do anything much as you set your Gamma Value to 1.0
After doing a couple of test with different lighting scenario (1 simple rect light, dome light with a black & white ramp, HDR images, etc)…
I feel this workflow suits me better, kinda inclined to what revilo3D & majority of others suggested:- 
(1) Setting Gamma to 2.2, with do not affect color turned on
(2) Adding a texture and selecting the bit map input gamma under Vray extra node for 8-bit files & adding .454 gamma node to color swatches
(3)sRGB button for V-Ray Frame Buffer to view my images properly
(4)Rendering in 16 bit or 32 bit exr or similar linear supported format
However it does lack a lot of contrast which I am still trying to figure out, why?
In some situations I am getting good results with sRGB button turned off. So I think I will un-gamma those images with 0.454 or similar value inside Nuke to get it back. It better to do that, rather than working on non-linear and getting wrong maths.
**And I am also wondering if it is really necessary to add 0.454 gamma node to CG Light (vray light) swatches, like kanooshka suggested. If that’s what he meant, I might have understood it wrong.
Here is an image with few of my settings for LWF tests, that I think I will stick with:-
http://imageshack.us/a/img705/7158/10796679.jpg
One interesting observation I made during this test is that - WHEN I applied an HDR images to my dome light and rendered it, without adding “bitmap input gamma,” I got a renderTime of 4min on a 800 by 600 rez
by adding “bitmap input gamma,” and setting it to 1.0 I got the same result, no change whatsoever in quality or noise but the renderTime went down by 1 min, I got a 3min…
http://imageshack.us/a/img803/7006/87178601.jpg