DSLocalizator adds more localization features to the core. Module content localization depends of each module.
You will find MMLinks (Another free module on this site) very useful for content localization. You can see a demos here:
http://dnn.tiendaboliviana.com/web/Modulesandresources/Modules/DSLocalizator/DSLocalizatorDemo/tabid/89/Default.aspx
Regards
MMLinks is a text/html module that supports localization. You can see a demos of both here:
It is a very advanced module and supports links, localized templates, and many more features