Just about everything worth translating can already be done so with the English patch.
The lang0.pak file is actually 2 files concatenated together. The first file contains the UI elements and the second contains warning messages. The English patch currently only translates the first file as I don't have translations for all of the warning messages and also because most of the time a warning message pops up it's not too hard to figure out what it's trying to tell you.
The only other possibly translatable items are:
src0.pak: Contains tutorial text and tip text that shows during loading screens
tex#.pak: Some textures images have text on them
flash#.pak: Contains the manga images shown during TMQs
None of which I would consider putting any effort into translating. If you want to attempt to translate some of that stuff you're on your own, but if you want to offer better translation alternatives to what we already have you can do that without trying to figure out any of the pak stuff using the
English patch. Information on how you can do this is at the bottom of the page.
As for pak files themselves, there's neither compression or encryption in those files. It's 100% raw file data. Any general purpose game extraction tool that looks through a file for common headers is enough to extract the data out of almost all of the .pak files. Also, the file size of the pak files must remain the same after any changes are made because otherwise it causes the game to crash.