http://www.theage.com.au/news/national/hightech-translators-leave-nothing-lost-i n-translation/2006/04/27/1145861488368.html reports on a computer that will translate voice and script fpr 2-way translation. Currently been tested in Iraq, apparently.
New Scientist reported on this, altho they mentioned it is mostly only stock phrases.
The best bit is this:
"Researchers have previously struggled to design an effective translation system capable of accurately turning speech into other languages and back again.
This was largely because software programs tended to break down languages into rules covering basic grammar and word order.
The new wave of translator technology will use software that learns the language as it is used on a day-to-day basis, rather than how grammar dictates it should be used"
Like, with a wave of the hand, all possible technical problems have been wiped out!