I have been using the SiComponents before. They allow you to change all text independently from the executable. You can embed the diferent languages in your executable (not recomended) or load them from files. There is also an editor to support translation. They are very good, stable, and fast.
In Delphi 2006 under Tools, Options, Translation Tools Options you can configure the translation tools, especially theTranslation Repository. It can be found under View, Translation Manager. All translated strings will be ressource strings and can be stored in language specific dll. Searching the help for Translation Manager will point you in the right direction.