Dalin Chen has iLingo Translator Pro (iTunes Link) for the iPhone and iPod Touch in the iTunes App Store for FREE (regularly $1.99) for a limited time.

Translate words and sentences between 53 languages for iPhone/iPod. Voice recognition and text-to-speech are supported for most languages. Internet access is required (Wi-Fi is recommended).

Supports most regular features in the following languages:
Afrikaans, Albanian, Arabic, Belarusian, Bulgarian, Catalan, Chinese (Simplified), Chinese (Traditional) , Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, Galician, German, Greek, Haitian Creole, Hebrew, Hindi, Hungarian, Icelandic, Indonesian, Irish, Italian, Japanese, Korean, Latvian, Lithuanian, Macedonian, Malay, Maltese, Norwegian, Persian, Polish, Portuguese, Romanian, Russian, Serbian, Slovak, Slovenian, Spanish , Swahili, Swedish, Thai, Turkish, Ukrainian, Vietnamese, Welsh and Yiddish.

Supports voice recognition for the following languages:
English(US), English(UK), French, German, Italian, Japanese, Spanish, Afrikaans, Chinese(Simplified), Chinese(Traditional), Czech, Dutch,Indonesian, Korean, Malay, Polish, Portuguese , Russian, Turkish

Supports text-to-speech in the following languages:
English, Chinese, French, Albanian, Icelandic, Polish, Korean, Japanese, Catalan, Afrikaans, Danish, German, Russian, Finnish, Haitian Creole, Dutch, Czech, Croatian, Latvian, Romanian, Macedonian, Norwegian, Portuguese, Swedish, Serbian, Slovak, Swahili, Turkish, Welsh, Spanish, Greek, Hungarian, Italian, Hindi, Indonesian, and Vietnamese.