Please let me know about your translations at 
http://wordpress.bytesforall.com or http://forum.bytesofrall.com
You'll get a credit in the source files, a link in the admin section 
and 1-2 links on wordpress.bytesforall.com.

1) Download and install http://www.poedit.net/
2) Choose new catalog from pot file and select atahualpa.pot 
3) Save the resulting your_languge.po file to the main theme folder, 
i.e. "wp-content/themes/atahualpa3/nl_NL.po" for a 
dutch translation. Look at 
http://codex.wordpress.org/WordPress_Localization to choose the 
right file name
4) In its default setting Poedit will create both the .po and 
.mo file. The .mo file is a binary version and the one we need.