What are the requisites necessary to install the plugin anyway?
Do I need to set special permissions and if yes where? Do i need to create virtual or real directories for each language I wish to translate?
I am running this on a Windows 2003 server with IIS.
Unfortunately, this plugin is now in the process of being phased out. We won't be updating it for the upcoming release of WordPress 3.2.
It's a bummer as it was a handy little plugin, but was never widely used here. If there's enough demand for it and we're able to find an alternate solution we'll revisit the idea, but for now we have no plans to do so.