The new version is released. If you've downloaded the first release, just download the new one from CodePlex and replace the .js file in the /_catalogs/masterpage gallery in your site collection. The project is still under Beta, so if you find some bugs please let me know.
The new version now supports localizations. The current version is published with English (LCID 1033) and Slovene (LCID 1060) translations. If the script can't find localization for your language, it will use english by default.
To add your own localization, add under "//Localization arrays" the translated following line:
var erte1033 = new Array("Please inputtt details","Alt Text","This will be displayed in RSS feeds","Embed Code","Paste your Embed code here","Insert","Close"); //english
var erte1060 = new Array("Vnesite parametre","Besedilo","Besedilo bo izpisano v RSS-viru","Embed koda","Prilepite Embed kodo v polje","Vstavi","Zapri"); //slovene
If you've localized the texts, I'd be happy to add them to the new release, so we could have as full version as possible. Please publish the translation under comments on my CodePlex HomePage.