We did it! Someone in our forum managed to make the files work. I believe he actually modded the tools instead so they would work to extract and recreate the text files. I just started working in the translation. I have no idea how long it will take, but the games is huge so I believe it won't be easy and we won't finish anytime soon. I don't want to hurry because I will try my best to keep the quality of the original text and I'm concerned about the meaning of every word, as we well know they actually have a different meaning after beating the game.
He managed to make the text files work in Notepad++ for translating purposes and I will be creating glossaries and checking every translation with Xbench. Xbench can either work as glossary AND as a blacklist. So after you translate a file, you can check if something is wrong by using the blacklist profile on the software. I'm very concerned with the quality, so using Xbench is a must. I'm still making entries for the glossary, and it will be huge, I believe… That's how the translation txt looks like (IT HAS SPOILERS!). Edit: I forgot to mention the target language is brazilian portuguese.