Couple of answers:
I would recommend to go through globaliazation section in dev guide.
Aaaand of course answer about localization cannot be complete without IMHO a bit nicer alternative - Xml files are pretty clumsy to work with (especially for devs) that's why I created database driven strongly typed localization provider for EPiServer.
just starting with EpiServer. In the Alloy sample site I see in Resouces/LanaugeFiles/propertyNames.xml
that file we create manually (not through the admin site)?
There are a lot of properties for different contenttypes. Do we create and populate this file manually as well?
and with the attribute '[CultureSpecific]' for a property in content type file definition we let know EpiServer that we have a version for a specific language for that property?
How EpiServer knows in what file to look the language versions for a property (in this case in propertynames.xml)?
thank you for the expanations.