Thanks for the plugin.
I am able to get it working, and have also set it up for editing as per your instructions here: http://wordpress.org/support/topic/how-to-use-editing-feature
I am able to get the editing window, and am able to contribute corrections to the translations. The changes are even saved and appear at https://translate.google.com/manager/website/corrections
However - they are not displayed on the site! The site keeps showing the translation without my corrections.
btw, even if I disable your plugin and translate the site directly from translate.google.com I get the same problem.