For the inline translations I use the Google Translate API, which is surprisingly good for words and short phrases. Unfortunately the API doesn't provide multiple translations, even though they show them on their own web site. Grrr.
Users are encouraged to edit translations before learning them, and I often think it would be awesome to crowd source appropriate translations for given contexts using this data. I'm getting ahead of myself though, I'd need orders of magnitude more active users and development time for that to work.