This is one of those applications I highly recommend you bookmark immediately.
BabelWith.Me lets you set up a simple, gorgeously designed chat-room in a matter of seconds. You’re then provided with a unique URL to share with whomever you’re looking to chat with – no matter what language they speak – and get chatting as you would normally.
The service supports up to 45 different languages and performs real time translation as you type. Developed by LifeChurch.tv using Yahoo’s Babel translation API presumably, the service works like a charm.
You currently aren’t able to set up an account of any sort nor save conversations, but considering the service is in Alpha mode – its hardly surprising.