First of all open you VNR and remove PPSSPP from there... http://prntscr.com/6npdz1
Then go into preferences, launching and uncheck "Automatically detect running
game... http://prntscr.com/6npidv
After this open your ppsspp, launch the game and go search for some dialog,then go to vnr and click this http://prntscr.com/6npekw
When VNR finished attaching to ppsspp, click in Menu ...http://prntscr.com/6npewf, after that choose Text Settings... http://prntscr.com/6npf6
In that window, choose Japanese (CP932, SHIFT-JIS)http://prntscr.com/6npfgv
After that just go back to your ppsspp and go the next dialog and some new sections should appear on VNR, after checking the similiraties you can see that one them has the same as the ppsspp, then choose that one has dialog http://prntscr.com/6npg8d, then just click save ... http://prntscr.com/6npgf4
After that the translations should appear if you advance in the dialog slowly... http://prntscr.com/6nluec
Btw it's recommended to use ppsspp version 0.9.8 or 0.9.9.