Comment from rejoc in #1382: "locales are used only when starting the application with the main directory (the one with start-xxx.py) as the default directory. No translations if starting from elsewhere."
I can reproduce this problem with the latest version (1.0.4b3, r3831). The locales are only used then started from the project directory or when i18n.locale_dir is set (this is impractical, since the path is usually something like '/usr/local/lib/python/site-packages/my_project-0.4-py2.5.egg/locales', i.e. depends on the version number etc. - it really should be found automatically).