We just received an email from our friends at Androidpit across the pond telling us that the updated conversation feature for Google Translate for Android that we saw together at IFA in September was ready.
In addition to conversation mode, improved language selection drop boxes and icons have been added to make the translation process more fluid.
Currently the conversation mode only supports translations between English and Spanish. It also has trouble with speed and dialect but its definitely a start. Also at IFA the translation was German to English and back so German could be right around the corner.