ANC Controller described an unauthorized runway entry event involving a foreign Air Carrier; noting even though the new Line Up And Wait phraseology has been implemented; foreign aircraft were still plagued with language barrier issues.

Narrative

ACR Z; a B190; was on left base Runway 32. Following this aircraft was ACR Y; an SW4; also for Runway 32. ACR X; a B747; called ready to go Runway 32 @ Taxiway K. I instructed ACR X to 'hold short Runway 32 at K awaiting IFR release'. I did not hear the read back because I had two (2) other frequencies transmitting at the same time. Lake Hood acft requesting landing clearance and a military acft executing a missed approach Runway 7R on UHF. I turned to scan my runway when I noticed that ACR X had taxied onto Runway 32. I immediately squared ACR Y base turn and got the other aircraft off the runway and immediately cleared ACR X for takeoff Runway 32. I informed ACR X of a possible pilot deviation and the phone number to call because I did not give the aircraft permission to LUAW. After reviewing the tapes the read back sounded like ACR X said 'all right we will wait' I am not sure what to recommend because we have changed the the way we taxi an aircraft into position and hold. We now use LUAW instead of taxi into position and hold. There still seems to be a confusion with foreign aircraft and the language barrier.