We are also preparing the switch to Delphi 2005 in the next couple weeks. After contacting Multilizer, it turns out that there is no support for Multilizer 5 with Delphi 2005, and as a result, we would be required to spend many thousands of dollars to upgrade to Multilizer 6. That isn't a very attractive option. As of this writing, Multilizer will be thrown out of here, never to return. I'm investigating using Delphi's built-in Integrated Translation Environment (ITE) at the moment. I remember there were all sorts of problems with ITE early on (like in the Delphi 3/4 days). I'm hoping enough work has been done in this area to make it usable for our fairly simple needs. If not, we're writing our own tools to do this.
I believe component vendors should provide version compatible releases for newer versions of Delphi. Most component vendors actually do this quite well. I also believe that when companies try to force you into spending thousands of dollars, you should look to replace them immediately.
Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in any way.