You can look at the following session from Palm Source for creating overlays
(towards the end of the presentation). Once you have one done you do not
have do anything in your application to make it work (there are a couple of
things to watch out for covered in the slides). Essentially, if the OS is a
Japanese OS (for example) and there is a Japanese overlay present along side
of the application, the OS will substitute in the localized overlay
resources.
http://www.palmsource.com/slides/Track%20900/903.pdf
Good Luck,
-Ezekiel
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