Translation files (.po files) should live under the same directory as the translation template (.pot file). That's generally the po/ folder:
po/
myapp.pot
de.po
ca.po
..
It's generally the job of the translators to create a .po file for their language out of the template and then send it to the developer, who will commit it to the source tree. Or the cleverer and more modern way: use Launchpad to translate your app and to automatically commit the .po files to your source tree. This way translators will be able to translate online and never have to worry about sending e-mails or knowing about the underlying format.
But anyway, back to the question: if you've got a valid .po file at least, the quickly share or quickly package commands should pick it up and do all the work for you.
That is, they compile the textual .po file into a binary .mo file and put it in the package ready to install.
That should work for your app. However, you can do a test without using the quickly commands. Try running the following command at the top of your source tree, where you usually run the Quickly commands:
python setup.py build_i18n
That should do a local build of the translation files into the build/ directory, where you should find the .mo files.
Best Answer
To be able to upload your project to launchpad, you must have the SSH key of your computer recognized by your launchpad account, a ppa set up for your project, your openPGP key recognized by launchpad, and then you must run
quickly shareorquickly release. It should connect to launchpad, allow you to specify the ppa where you wish to upload, then upload it. I had problems similar to yours yesterday, then I found out I had to make launchpad recognize my computer.