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I use TinyMCE, which works very good for me (especially useful with the plugins for XOOPS code, images, quotes and multi-language. The thing with it, though, is that most language packs does not include the translations for the plugins, which is why you get the missing labels.
The files you need to translate are located in the following folders:
\class\xoopseditor\tinymce\tinymce\jscripts\plugins\xoopscode\langs
\class\xoopsemotions\tinymce\tinymce\jscripts\plugins\xoopscode\langs
\class\xoopsimagemanager\tinymce\tinymce\jscripts\plugins\xoopscode\langs
\class\xoopsmlcontent\tinymce\tinymce\jscripts\plugins\xoopscode\langs
\class\xoopsquote\tinymce\tinymce\jscripts\plugins\xoopscode\langs
\class\xoopsquotecode\tinymce\tinymce\jscripts\plugins\xoopscode\langs
The filenames should be *.js and *_dlg.js, where * is equal to the two letter language code for your specific language.
These files are not present in the translator's edition of XOOPS (which is for translators), but I have alerted Mamba and Trabis of this issue.
For an example, look at the Swedish translation, which can be found on SourceForge, both under released files and SVN.