Translating it is pretty straightforward. Each line preceeded by "#?" means that the message isn't translated. The English version is just above it, preceeded by '####'. You just need to erase the #? and add the translated string after the '='.

There should be an area that says where the translations begin and another one way way below that says something about everything after it being optional. Everything between those two points is what's useful for translating.

I'm not sure why Wordpad would change color... might be it just couldn't handle the amount of text.