Yep, it doesn't work.  See http://sourceforge.net/apps/trac/gallery/ticket/1321

Check your logs and you'll see error messages like:
```
2013-02-20 08:09:08 -08:00 --- error: Translation scanner error.  file: modules/gallery/views/admin_block_welcome.html.php, line: 3, context: array (
  0 => 
  array (
    0 => 307,
    1 => 't',
    2 => 3,
  ),
  1 => '(',
  2 => 
  array (
    0 => 315,
    1 => '"This is your administration dashboard xx"',
    2 => 3,
  ),
  3 => '.',
)
```

(I was experimenting with the admin dashboard strings)