Ayashii Gamesubs had attempted a translation but there was some sort of problem regarding the palette on reinserted sprites, I was hoping to be more specific but the project page has since disappeared :/
Out of interest I tracked it down through the
web archive. Not too much of use, unfortunately. I actually did put together my own data extractor, though.
I had to same palette issues looking at the game images with GGD. Incidentally, I have the same issues with a *lot* of ToD2 images/graphics. Only battle sprites I recall not having any trouble with decoding. Maybe I should strip out the alpha channel and see what happens... I had to do that to make editing the ToD2 half width font possible.