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One of the most exciting projects at Google (at least of those the public knows about) is their Statistical Machine Translation effort.
Franz Josef Och just announced that a first Arabic/English* beta is now live. Try it with Al-Jazeera - the results aren't perfect, but certainly the best I've ever seen for machine translation ... pretty amazing.
* Particularly easy to get parallel corpora for those those days, eh?
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Christian Langreiter, Langkampfen