I upgraded http://pnarula.com/wpd to RC2. Here is my take on it. First I will reproduce the error I reported earlier
1. Calendar is not working at all. Please see - http://wordpress.org/support/6/4652
2. Horizontal menu in admin interface is not showing up correctly due to bigger default font size in Hindi. Please see - http://wordpress.org/support/6/5301
3. This is the MOST IMPORTANT ONE - I am getting an error when ever I login into admin interface. Please see a screen shot at - http://pnarula.com/files/hindi-post-error.jpg
Issue 1 is resolved it shows the calendar as S,M,T - dunno how to show in hindi.
Issue 2 &r seems to be IE bugs, which gets triggered seeing Hindi. Does not happen in Firefox. Dunno what to do with it.
One last thing I still have to put the locale('hi') in wp-l10n.php in wp-includes to activate Hindi thingy completly.
Keep up the good work guys.