vshare will not do conversation by itself, it just pass the video to mencoder or ffmpeg, you can set which program you need to convert the video also the parameters. So vshare can handle video only if your mencoder/ffmpeg can do the video conversion.

To change language, you need to edit language files and templates. Still some language files are in php script (Zend encoded), we are working on to move all language strings to external language files, this is 90% complete. If Chinese need unicode, you may need to change all database formats too.