path issue with translated (entity_translation) nodes
Entity Translation 7.x-1.x-dev solves this.

Hint provided in the Packt Drupal-7-Multilingual-Sites book:


  Pathauto works fine for nodes using the node translation model as each
  language  has a separate node. At the time of writing, for feld
  translation, the Pathauto and  Entity Translation module maintainers
  have been ironing out some issues. To get   the automatic URL aliases
  to work in Drupal 7 for feld-translated nodes, you must  use at least
  Entity Translation version 7.x-1.0-alpha2, if available, or the most
  recent  dev version.