Robert Levin, CEO of Transclick, alerted me to an app they have developed that plugs into Skype and translates text messages in real time. So you can message across languages.

The app is in beta currently (isn't everything these days) and you can download it here: http://share.skype.com/directory/transkype/view/.
It looks like it's going to be a paid app, so try it out now while it's free.

Although I love Skype, I'm not much of a text messeger; so please let me know how it works...