A new really cool App was just released a few weeks ago, Linguatec Travel Voice Translator. It allows you to simply speak into your phone and it will translate whatever you say into another language of your choice with an impressive degree of accuracy!

You just select the language you want translated and the output language, the app does the rest! You can choose whether you want text output only or audio and the app will speak the translation.

Simple, easy and so useful at times! Inexpensive too $0.99.