1: Refer to attached screen shot. I would like to know how I would localize that.
Thank you for bug report. This bug will be fixed in version 2.08.02.
2: There are some garbled information in chm file.
What tool do you use for localization chm file?
3: The localized net.dll should placed on Radialix folder or Radialixru (Langcode) folder? as net.resource.dll.
No, satellite assembly has to be stored into subfolder named according <LangCode>, for example: zh-CHS\net.resource.dll, zh-TW\net.resource.dll, de-DE\net.resource.dll.
4: What is the use of upd.exe and rtl120.bpl (And both of them can use the .rus file)
upd.exe is a web-update service file. It does not display any messages and has not to be localized. rtl120.bpl is a CodeGear Delphi/C++Builder runtime DLL. Localization of this file is up to you. If you'd like to localize this file, please create resource DLL using default target path.
5: Is there any hard coded string that can be localized using .chs / .rus etc?
Radialix files contain no hard-code strings which have to be translated.