Google has pushed an update for the Google Translate app for Android in the market. The app has a UI overhaul to make it cleaner and easier to use. However, the main talking point of the update is the new feature - Conversation Mode.
Conversation Mode is currently in the alpha stage. What it does is translate speech from one language to another in real time. It allows two people, who speak different languages, to have a conversation with the Android phone acting as in interpretor. This is a really cool feature and I am sure will be very helpful to travellers.
Since the feature in in alpha, there are obviously a few rough edges, but it does a good enough job at translating when I tested it. However right now, the only langauages it works with are English and Spanish. But I am sure Google is working on adding new languages already.
Another use I see for this feature is for deaf people. Since the app displays what is spoken in text as well, it can be really useful for them.
If you already have the app installed, you can update it from the market. If you do not have it installed, search for google translate in the market or scan the QR code on the left with a barcode scanner (maybe Google Goggles).