Not quite...
If you have an english set of templates, your language.txt file should be in that directory, in english. If you have a german set of templates, your languages.txt file in german should be in that directory.
This works with dynamic pages using the page.cgi?t=german/english option.
To do what you are doing, you are building two different page trees, which is really similar to installing links twice, since each one would be using the same scripts, and same config data, they would get confused.
the "page.cgi" option will avoid this, at the cost of dynamic pages.
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