This new version has two major changes and lots of bug fixes included.

The most important change is the integration of the plugin with the WordPress GetText system, which is the way WordPress (and some themes and plugins) provide localized versions of themselves. This is done with a couple of files (called .po/.mo files because of their extensions) that includes a list of translated strings that that software include.

What Transposh now does is to utilize said files, so if you have the files that translate WordPress to Spanish, they will take precedence and Transposh will use the files to make the translation of the interface to Spanish. Why is this better? there are a few reasons, one is that sometimes it enables translations where they were previously impossible, another is that the translation is human based and deemed more accurate, and the last is that it can clear ambiguity especially in short strings such as month names and day abbreviations.
How to get the .po/.mo files, and more information about how this work can be found at http://trac.transposh.org/wiki/UsingGetText.

This feature also includes a rewrite of the in-memory caching system of the plugin, which now supports xcache and eaccelarator in addition to the previous versions APC support. This version uses a more compact representation of the data which improves performance and reduce memory usage.

More fixes in this version:

• Tags from the tag cloud will now be translated with mass translate
• Fix for the sneaky “not a valid plugin header” issue, if you get “Default” listed twice in your widget selection settings, please delete the widgets/tpw_deafult.php file
• Fix for MS translate tendency to add an extra space to translation result
• Fixed bug with list with flags css widget preventing the view of flags

We have also changed this site layout a bit so you can see the development feed and changes in a more real time fashion.

Waiting for your feedbacks on this version.

Update: A bug was discovered when using the plugin without caching, if you have repeat translations, or you can’t see translations previously made, please reinstall the plugin from wordpress.org, the plugin there is now fixed. Thanks Nicholas for reporting this.