The answer is that sitefinity doesn't support combination of embedded templates and local resources. Your only option is to use global project resources, or the better one is if you are doing a custom module to register a sitefinity resource class, since then all your localized labels, can be edited from the Sitefintiy UI and you can also make language packs. Check the Producs sample from the SDK, the global resource class is registered in the module initalization Res.RegisterResource<ProductsResources>() and see the ProductsResources that inherits Telerik.Sitefinity.Localization.Resources.
All the best,
the Telerik team
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