Hi Mike Badgley,
Generally you could enable localization for the provider, but there are several bugs that reflects to the different versions.
I believe that we will be able to fix this issue in one of the next service pack of 3.7. Sitefinity 4.0 will have Images and Documents with localization functionality, so you may consider this as another option.
All the best,
Ivan Dimitrov
the Telerik team