I'm the developer for this plugin : http://wordpress.org/extend/plugins/gts-translation/. We translate the page by using filters to insert translated text for all content. Unfortunately, our users have reported that the links produced by your plugin show up without translation.
The problem is that your plugin doesn't apply filters to the post titles or permalinks. So, I have a code change to propose to you. It would be great if you could change line 225 (in version 1.6) to:
echo "\t" . '<li' . $li_class . '><a href="' . apply_filters( 'the_permalink', get_permalink($links->ID) ) . '">' . apply_filters( 'the_title', $links->post_title, $links->ID ) . '</a>' . $comments . '</li>' . "\n";
That way, other plugins have a chance to modify the link or title to their heart's content.
Thanks a lot!