Here's another automatic translation tool from Microsoft: the Captions Language Interface Pack (CLIP). CLIP is an offline real time translator that translates whatever control is under the mouse cursor. CLIP manifests itself as a stand alone window and a tooltip (you can enable/disable both independently). Here's the window:-
Here's a cut out of a menu with a CLIP tooltip translating "New" into "Nouveau":-
At the time of writing CLIP supports translation from English (United States) to French (France) and Alsatian (France) and vice-versa but you can probably expect more languages to be added in the future.
CLIP has similarities with another Microsoft technology. Back in May 2004 Microsoft announced Microsoft Application Translator (MAT). This product was designed to translate applications on the fly. MAT was never released but I'm guessing that CLIP is using some of the same technology.