I am not sure how Locopon achieved this. Most likely, this is another instance of the navigation menu (with some fancy parameters), and its localization is part of the menu localization.
It could also be achieved by using TEXT skin objects which allow for localized static text in the skin. You would not need DSLocalizator for that.
Another way to achieve this, would be to have two skins, one for each language and then localizing the skin to be used with each language in DSLocalizator's portal and tab localization forms.