Here, on a German system, it works for folders, applications and direct access to preference panes.
It isn't consistent, though: while the selected match (the one displayed in the bezel) is shown with its localized name, the other matches listed below the bezel are shown with their original names. E. g. "Calculator.app" is "Rechner" in German, and it is found correctly when I start typing "Rec...", but in the list below it still shows as "Calculator.app" in "/Applications/Calculator.app", instead of "Rechner" in "/Programme/Rechner".
Quicksilver
It isn't consistent, though: while the selected match (the one displayed in the bezel) is shown with its localized name, the other matches listed below the bezel are shown with their original names. E. g. "Calculator.app" is "Rechner" in German, and it is found correctly when I start typing "Rec...", but in the list below it still shows as "Calculator.app" in "/Applications/Calculator.app", instead of "Rechner" in "/Programme/Rechner".
Quicksilver
Actually, b57 runs fine here on a PowerBook G4 with Mac OS X 10.5.8.