Hi B471Code3,

Appreciate the compliments.  Remember, this approach is only applicable in a very limited set of circumstances and has some non-trivial drawbacks.  As Sebastian mentioned in the blog comments, any module that specifically relies on the ApplicationResourceDirectory constant (bypassing DNN localization and using it directly) could produce inconsistent behavior.  Also, I believe that per-portal localization of usercontrol resources in the App_LocalResources directory will fail (I have not yet needed to perform such customization, so I haven't explored rectification of this issue).

Assuming that your design requirements necessitate these changes (as mine did), then it's nice to have the option.  I hope that in some point in the future the ApplicationResourceDirectory constant is marked depreciated so that this functionality becomes possible without core modification (and any downsides).

To address your question specifically, I haven't used the Xepient module you referenced directly.  You do mention "resourcekey:Label1.Text."  Your control needs a 'meta:resourcekey="Label1"' attribute, and your resource file needs an entry having a name of "Label1.Text."  This is a bit different than what you wrote, so I wonder if this is not perhaps the problem.  Short of that, I'd be happy to look over your markup, again with the caveat that I haven't used the module you mentioned.  I'm at brandon [d ot] haynes [a.t] everysport.net.

Brandon