Google Working On Speech-To-Speech Translation Phone, AKA, Your Own Personal Babel Fish

"We think speech-to-speech translation should be possible and work reasonably well in a few years' time.

Clearly, for it to work smoothly, you need a combination of high-accuracy machine translation and high-accuracy voice recognition, and that's what we're working on.

If you look at the progress in machine translation and corresponding advances in voice recognition, there has been huge progress recently."