The developer forgot to mention the third directory the user has to create in the site root directory. You need:
In _languagefiletool_langfiles_original I then created the subdirectories
subdirectory "administrator - language - en-GB" (into which you copy:)
subdirectory "language - en-GB" (into which you copy:)
en-GB.com_virtuemart.ini (this is not the same file as above!)
Thereafter I created identical empty subdirectories in _languagefiletool_langfiles_processed
The next step is to copy the exension files into _languagefiletool_extensionfiles. For this I simply copied the complete administrator, components, modules and plugins folders into _languagefiletool_exensionfiles.
After all these preparations you can use the component.
Alternatively you could use the language files I uploaded here - They are not yet complete but work pretty good already.http://forum.virtuemart.net/index.php?topic=81301.msg274759#msg274759