My experience (with Spanish) is that the translation dictionaries were paired English->Spanish and Spanish->English. And I could set the default dictionary to be either, but not both. And that the Kindle version worked on MobiPocket Reader after DeDRM (just an experiment since I don't need a dictionary on my computer since WordReference.com is better).
I mentioned the two dictionaries because it might be a simple solution to your goal. However, I suspect you are diving in a bit deeper into the dictionary eBook format itself.
I found in the Wiki and another MobileRead thread how to build a dictionary and a source for existing translation dictionaries that you can convert to MobiPocket (Kindle):
http://xdxf.revdanica.com/down/index.php
By the way, the Kindle 2 does work with a DeDRM'd translation dictionary.