You can translate documents stored on your computer, web pages, Wikipedia articles and Knol articles. After importing a document, Google generates the translation, displaying it next to the original text. You can select a sentence from the original document and Google lets you edit the translation.
Google Translator Toolkit includes the collaborative features from Google Docs: you can invite other people to edit or view your translations, but the application doesn't display the collaborators that are currently editing a document.
An interesting feature is the "translation memory", a database of already-existing translations. "As you translate new sentences, we automatically search all available translation memories for previous translations similar to your new sentence. If such sentences exist, we rank and then show them to you. Comparing your translation to previous human translations improves consistency and saves you time: you can reuse previous translations or adjust them to create new, more contextually appropriate translations."
Google's service will make it easier to translate documents online, but it's also a great way to improve the quality of the machine translation service.
{ via Blogoscoped Forum }