drupal

The configuration directory will be discovered by stripping the  website's hostname from left to right and pathname from right to  left.

The first configuration file found will be used and any  others will be ignored. If no other configuration file is found then the default configuration file at 'sites/default' will be used.

For example, for a fictitious site installed at http://www.drupal.org/mysite/test/, the 'settings.php'
is searched in the following directories:

Adaptivetheme

http://adaptivethemes.com/documentation/using-template-overrides

Adaptivetheme for Drupal 7 is HTML5 and includes many template overrides in the core theme that have been converted to use HTML5. When selecting templates to override you should always look in the core base theme first, to see if an override exists already, and if so copy it for inclusion in your sub-theme.

http://groups.drupal.org/node/47478#comment-771088

Do you have Entity Translation module installed?

1) No. Current user's language ("content language") is the same as the "interface language" which is determined by the interface language negotiation/detection settings.