Just looking at what I think is the D7 handbook for Translating user-defined strings - http://drupal.org/node/1114012 and noticing how similar it is to the old D6 version - http://drupal.org/node/313293

The paths certainly need to change, but I do think that how to deal with User Defined Variables has changed too.

Would be able to filter out the module strings from the user defined strings, but don't have confidence that it should be done en/admin/config/regional/translate/translate vs the many other places where strings can be changed with Strongarm or StringOverrides.

See - http://evolvingweb.ca/story/drupal-7-multilingual-whats-new-i18n