Take a look at this video:
As you see it's from 2011...that was the last time I used PWSE so, I am sorry but no, i can not help you. What you get from that video, is the proof that it works. I rememeber that it wasn't very straight forward but it is possible.
And sorry if i say straight but if you don't have the patience to get the tool to work, you will sure never complete the huge amount of text you need to translate especially that it's not plain text but mixed with the commands stream you see in your screenshot. Last but not least, I believe that some bugs was on it so i don't know if a full translation is even possible with that tool.
I suggest a game that has much less text as that if you are learning.