Hi,

1. The translation as of now is rather rough and happens in text files. See
https://github.com/clintbellanger/flare-engine/tree/master/mods/default/... for the engine and
https://github.com/clintbellanger/flare-game/tree/master/mods/fantasycor... and
https://github.com/clintbellanger/flare-game/tree/master/mods/alpha_demo... for the game related stuff.

Specially see the .pot files, which are the original model. All the other .po files are translations. So to start a translation for a new language, you'd just copy the pot file and fill in the msgstr fields.

2. You can either download the files at said links and send it in via email to our lead developer clintbellanger@gmail.com or any other core developer, (such as me stefanbeller@googlemail.com)

If you're familiar with git and github, you can fork the repositories
https://github.com/clintbellanger/flare-game and https://github.com/clintbellanger/flare-engine
and create a pull request once you're done.

3. We're currently discussing whether we switch over to use gnu gettext instead of our own solution. This would help with us with using launchpad or other online translation services.

Exactly. :)

1. Get a copy of the pot file and save as engine.is.po.
2. Translate item by item (May take a little long as flare is already quite grown)