Hmm, this is odd...

I've looked in the code that handles the translation and there seems to be a miss in the handling of literal controls, i.e. we don't. I think this was overlooked because the literal control lies within the WebControls namespace. A label control worked fine for me, but one of the differences between them is that the label control inherits from WebControl.

Are you sure you where using a literal control on your collegues computer as well? I'm asking because I do not see any way aliteral control should work :/.

What you could do is to use something like:
<asp:Literal ID="lit" runat="Server" text="<%$ Resources: EPiServer, button.search %>"/>

which would have been the same as:

<aspLiteral id="lit" runat="Server" translate="/button/search"/>

... had it worked.

Well, you are correct. I looked at his code and it was labels not literals. Thanks for the $Resources-tip, i'll try that instead. 

The $Resources-tip is how you should implement translate. It is how you use $Resources when i normally work with asp.net and languange in an xml-file.

Not sure if you can use that on an <episerver:property...> but for all aps.net-controls likte literal and label etc. 

Best Regards

/Eric