The translation API is being used by many Google services and other sites. Here's a list of my favorite applications:
8. Picasa Web Albums translates comments automatically.
7. Google Maps reviews can be translated to find some information about businesses from other countries.
6. Translate YouTube's search results by clicking on a checkbox at the top of the page.
5. Twitter's search results can be translated into English and you can filter the results by language.
4. Google Reader translates entire feeds if you enable an option from the feed settings menu.
3. Translate the captions of a YouTube video.
2. Hab.la translates IM conversations. "Say someone visits your site and greets you in a foreign language. As soon as a particular language can be detected, seamless translation between your chosen language (English in our case) and that of your website visitor begins."
1. Real-time translation in an experimental version of Google Toolbar.
{ Thanks, z x. }