I think you have the right attitude, Scott, in that the goal of the lessons is to learn, and the reward is the improvement in your playing, with the diploma just being an optional extra if you want it. As Haris said, you could retake D01 next year if you wish, along with D02, but bear in mind that the set pieces can change from year to year, so you will probably need to work on new recordings, as well as giving feedback to other D01 students. Consequently you'll need to work out how much time you have available if you do decide to do both levels.
You shouldn't really need to know Spanish in order to submit your exam piece if you follow the FAQ and the various links given in other relevant places, but for next year, with the benefit of hindsight, I'll try to put together a more detailed and prominent guide to how to submit the exam piece and avoid the pitfalls experienced by several candidates this year.
Meanwhile I second Haris's recommendation of the Google translator - I use it a lot when dealing with unfamiliar languages, and while it may sometimes give odd results, usually you can get a pretty good idea of the meaning.
Classical Guitar Forum.
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