I think it would be possible for a fan translation to be done. Most of the strings seem to be kept in RES.000 (in the DATA folder in the Anvil of Dawn directory) starting at offset 0x4E0A. The strings can be easily replaced and then the game will have German text.
The problem however, is that because of how the files are read, you can't tamper with the length of the file. That is, you must keep the EXACT same character count while translating.
If the game has the English phrase "hello", then having "hallo" as the German translation string replacement would be fine because it's the same amount of characters.
However, if you had the English phrase "I have a sword", the german translation "Ich habe ein Schwert" (google translated) would not be allowed. The English phrase has 14 characters (including spaces) and the German phrase has 20 characters (including spaces).
You would need someone who is VERY talented in both English and German - because they would have to keep the same meaning and phrases of dialog/wording without changing the character count. I'm sure it can be done, but the vocab and language skills required would be pretty intense.
Hope this helps or gets someone on the right track anyway.
Post edited October 07, 2016 by shaneharro1