Hi

If you refer to pedia fields that show TXT_KEY_PLACEHOLDER something, that's "normal". These entries have always been missing. It's just become easier to spot them, which helps the guys updating the pedia (see
blazenclaw's thread)
The launcher is still the way to go.
If it's another problem that appears, then it's not normal.
Ok, let's begin with this error:
1) Is the size of the file 21985 bytes?
2) Can you open the file with a good notepad editor (preferrably notepad++)?
3) Does it confirm it's an iso-8859-1 file? (in notepad++, it's written in the bottom right)
4) Can you see </Civ4GameText> at the end (line 88)?
5) Does the text inside the strings appear readable?
Code:
<?xml version="1.0" encoding="ISO-8859-1"?>
<!-- Created with the FfH editor by Kael -->
<!-- Sid Meier's Civilization 4 -->
<!-- Copyright Firaxis Games 2005 -->
<!-- -->
<!-- Game Text - Units -->
<Civ4GameText xmlns="http://www.firaxis.com">
<TEXT>
<Tag>TXT_KEY_MESSAGE_ADD_FROZEN_SOULS</Tag>
<English>A spirit has been trapped in your empire and has become a Frozen Soul</English>
<French>A spirit has been trapped in your empire and has become a Frozen Soul</French>
<German>Ein Geist wurde in deinem Reich gefangen und ist zu einer Gefrorenen Seele geworden</German>
<Italian>A spirit has been trapped in your empire and has become a Frozen Soul</Italian>
<Spanish>A spirit has been trapped in your empire and has become a Frozen Soul</Spanish>
</TEXT>
...
...
...
5) If everything looks ok, please rename the file to anything else like test.xml and try to launch the game again.