The MIR Translator app does the amazing feat of translating text in photos taken by the Nokia N900 camera in over 30 international languages. The application also employs novel interactive recognition techniques.
Take the picture, select the area of the screen that contains the phrase you want to translate, select what the original language is and the language you want it converted to and then let it do its thing.
Currently available for testing in extras-devel. Requires internet connection to work.