The good news is the problem is solved. A friendly chap in stackoverflow actually bothered to look into it.
The problem is as simple as the translation files couldn't be found. For some odd reason the important information about how Django locates them is at the very last section of the documentation. It is really easy to miss.
All you have to do is to move the locale directory with the translation files into your Application directory. Thats it !!!
If you need to recreate the translation files you need top use the terminal, browse to the Application directory and run your command 'django-admin.py makemessages -l de' from there.
You can't do this from Aptana Studio 3.0, since it requires you to run any Django command from the root rather than from application directory. Hence you need to do it in the terminal.
Just download my test app and try what I just said here, as I intend to remove the test project within the next few days.