"Traveling to another country can be an amazing experience. The opportunity to immerse yourself in a different culture can give you a new perspective. However, it can be hard to fully enjoy the experience if you do not understand the local language. For example, ordering food from a menu you can not read can be an adventure," explains Google's mobile blog.
Google says that it's a good idea to point your phone at the phrase you want to translate and select the region that includes the text to improve detection.
I tested the feature by trying to translate phrases from a French magazine (Science & Vie Junior), but the results weren't great all the time. Here's one of the best results:
(screenshots taken using ShootMe on a Nexus One)
To install Google Goggles, you need a phone that runs Android 1.6+. Search for Goggles in the Android Market or open the barcode scanner and scan this QR code.