A fresh version of Google Translate hit the Market today. Conversation mode (direct speech to speech translation) now works in 14 languages: Brazilian Portuguese, Czech, Dutch, French, German, Italian, Japanese, Korean, Mandarin Chinese, Polish, Russian and Turkish. Also new is a personal dictionary, the ability to correct voice input before having it translated, and pinch zoom support for getting a close up of the translated text (Chinese symbols can get surprisingly complicated).
Google has helpfully provided a video:
Notice anything about the voice in the video? It's not the usual scary robot voice.