Originally Posted by
BLI-Flyer
Say you're visiting a Spanish speaking country and you don't speak Spanish. You'd set the input language to English, the output language to Spanish, type in the phrase you want translated and show the result to the person you're "talking" to. Now, hand the Kindle to that person so they can communicate back to you.
http://kindlefish.t15.org/dialog.html
There's still no virtual keyboard yet, but is this about what you were looking for?