Locatiozation on MOSS 2007 is a piece of cake to start creating your site multi-lingual site.
to start creating multi-language site on sharepoint 2007,you have to use one of the new features on MOSS 2007 called Variations.
when you create variations on your site you might face this problem which mentioned below.
if you got this error message when you try to create heirarchies on your site in sharepoint 2007 :
"No Variation Root Web has been set - hierarchies cannot be created until a Variation Root is set."
simply this because you didn't specify the variation root of your site.
click on variations link and set / on the location to create the variation on your root or base on your select.
hope this helps.