Manikantan is a keen (Python and) Flash developer and has produced a prototype app, Translator, for S60 3rd Edition phones that leverages Google's recently updated language translation engine. A nice Web 2.0 example, even if it's not very polished yet. See below for screenshot and download link.

You can get the Translator, based on Google’s Translation here. More info on it here.

This application can currently translate between 9 international languages.