The user-configurable messages don't get translated. A default value for one string is also not currently localized.
There is already a string-substitution system in Drupal (the localization system). That should be used instead, as it can support custom strings *and* their translations, and works for any localized string, not just strings modules decide to store as variables.
Comments
Comment #1
Thomas_Zahreddin commenteduser defined strings are translated via http://drupal.org/project/i18n. Form this module use the submodule 'String translation'.
Comment #2
lotyrin commentedI didn't realize i18n provided variable translation. I suppose that solves part of this issue, but I'm still not sure that variables are appropriate.
Comment #3
robloachhttp://drupalcode.org/project/r4032login.git/commit/d254e34