There are two ways the language DMFI works.
One is to take the words of a phrase and then scramble the vowels, consonants and special characters according to a pre-determined code.
Some languages have preloaded words from actual FR sources (eg. drow: type 'hello' and 'vendui' is the word that pops out). And apparently certain locations are supposed to be thought of in real-world nationalistic senses (eg. Amn = Spain; Thay = Russia; Calimshan = India/Middle East). So it is not surprising if some of these locations use words from their respective language groups.
For words that are not determined from a preset dictionary of words, they are scrambled according to a predetermined code as above (but each language uses a different one!).
It's quite impressive how they've done it.
