Not free, but comes with one free language and you can purchase others fairly inexpensively. I picked it up on a lark and for my one included translator, picked Spanish.

I printed out a sheet in Spanish from a web site and took a picture on an iPhone 3Gs and sure enough, after about 20-30 seconds, it translated it pretty darn well.

My only nits:

The font in the translated text is really big, so it isn't a very smooth read, and the formatting is all gone, so it lumped in all the text into almost a long stream.

Additional languages cost additional $$. Not a lot, and I suppose that is a reasonable expectation.

It requires an internet connection, prefereably a fast one to upload the picture you took for translation. If you are in Spain, for example, that could be some crazy data roaming fees for very much usage.

I picked it up just because I thought from a geeky standpoint, it was crazy cool, more of a novety. The example they give of being in a French resturant and using it to translate the menu showed it off well.