The folder-creation is correct.

You don't need to create those files. Simply download them from earlier posts in this thread.

For editing I'd use SubEthaEdit (as I asume you're using a Mac, when you mention TextEdit): http://codingmonkeys.de/subethaedit/

After translating, choose from the menubar format->file-encodings->Western (ASCII)

In the dialog, tell it to convert the file.

Everything else is correct, as far as I can see it (afaicsi).

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