GMAO is a free and easy to use, simple program to help with translating manga. GMAO allows you to mark up areas (text bubbles usually) on an image (scan of a manga page) and attach translations to the bubbles.
GMAO will then take care of laying out the text in the bubbles. GMAO also does nice stuff like export pages with javascript pop-ups when you mouse over the bubbles you`ve defined, or export the image with the text from the language you wrote, or generate character lists, and so on.
GMAO uses an XML file to store the annotations and translations. This is a flexible, standard format that other applications should be able to use. The DTD (Document Type Definition) is specific to Manga translation though. Images can be loaded either locally, or over the web.
The XML file only contains the image file name, and relies on the settings in GMAO to be correct to get full image location.