There are two main technologies behind machine translation, Yahoo's Babelfish (Systran) and Google Translate.
Systran is rule-based whereas Google uses a statistical model.
Rule based - attempts to create a translation using a set of rules that define essentially how words should be substituted to create translation.
Statistical - compares large volumes of translated copy, a multilingual database of previously translated documents and tries to map sentences and words based on matches it finds in the database.
Both systems are fundamentally limited by the fact that machines cannot yet understand the copy they are translating. With context and meaning out of the window, all that can be achieved is a skeletal meaning, stripped of sense and coherence, that is often more amusing than useful.
Below are some examples:
Original French:
Dès qu'il fut dehors, Pierre se dirigea vers la rue de Paris, la principale rue du Havre, éclairée, animée, bruyante. L'air un peu frais des bords de mer lui caressait la figure, et il marchait lentement, la canne sous le bras, les mains derrière le dos. Il se sentait mal à l'aise, alourdi, mécontent comme lorsqu'on a reçu quelque fâcheuse nouvelle. Aucune pensée précise ne l'affligeait et il n'aurait su dire tout d'abord d'où lui venaient cette pesanteur de l'âme et cet engourdissement du corps. Il avait mal quelque part, sans savoir où. ; il portait en lui un petit point douloureux, une de ces presque insensibles meurtrissures dont on ne trouve pas la place, mais qui gênent, fatiguent, attristent, irritent, une souffrance inconnue et légère, quelque chose comme une graine de chagrin.
English (human translation):
As soon as he got out, Pierre made his way to the Rue de Paris, the high street of Havre, brightly lit, bustling and noisy. The sharp coastal air braced his figure, he walked slowly, his stick under his arm and his hands behind his back. He was ill at ease, with heavy heart, as one is after hearing unpleasant tidings. He was not distressed by any definite thought and he would have been puzzled to account, at any given moment, for this dejection of spirit and heaviness of limb. He was hurt somewhere, unable to pin-point his malaise. Lingering within him there was a twist of pain, one of those almost imperceptible wounds which we cannot lay a finger on, it interferes, irritates, drains us, depresses us, this small seed of sadness.
And here are the translated versions (from French):
Yahoo's Babel Fish:
As soon as it was outside, Pierre moved towards the street of Paris, the principal street of Le Havre, lit, animated, noisy. The a little fresh air of the edges of sea cherished the figure to him, and it went slowly, the cane under the arm, the hands behind the back. It was smelled badly at ease, weighed down, dissatisfied like when one received some annoying news. No thought specifies did not afflict it and it would not have known to say first of all from where this gravity came to him from the heart and this numbness from the body. It had some share badly, without knowing where; it carried in him a small painful point, one of these almost insensitive bruises which one does not find the place, but which obstructs, tire, sadden, irritate, an unknown and light suffering, something like a seed of sorrow.
Google Translate:
When he was outside, Pierre went to the streets of Paris, the main street of Le Havre, lighted, busy, busy. The air of a little fresh seashores figure caressed him, and he walked slowly, cane under his arm, hands behind their backs. He felt uncomfortable weight, as unhappy when received some disturbing news. No precise thought it sad and knew he would say first of all that this was due gravity of the soul and the numbness of the body. He had badly somewhere without knowing where; He wore it a little painful point, one of these almost insensitive bruises which are not found instead, but the way, tired, sadden, irritate, suffering and unknown slight, some something like a seed of sorrow.
Another example in German
In diese Verlegenheit gerät sie ohne ihre Schuld. Sie fängt von Grundsätzen an, deren Gebrauch im Laufe der Erfahrung unvermeidlich und zugleich durch diese hinreichend bewährt ist. Mit diesem steigt sie (wie es auch ihre Natur mit sich bringt) immer höher, zu entfernteren Bedingungen. Da sie aber gewahr wird, daß auf diese Art ihr Geschäft jederzeit unvollendet bleiben müsse, weil die Fragen niemals aufhören, so sieht sie sich genötigt, zu Grundsätzen ihre Zuflucht zu nehmen, die allen möglichen Erfahrungsgebrauch überschreiten und gleichwohl so unverdächtig scheinen, daß auch die gemeine Menschenvernunft damit im Einverständnisse steht. Dadurch aber stürzt sie sich in Dunkelheit und Widersprüche, aus welchen sie zwar abnehmen kann, daß irgendwo verborgene Irrtümer zum Grunde liegen müssen, die sie aber nicht entdecken kann, weil die Grundsätze, deren die sich bedient, da sie über die Grenze aller Erfahrung hinausgehen, keinen Probierstein der Erfahrung mehr anerkennen. Der Kampfplatz dieser endlosen Streitigkeiten heißt nun Metaphysik.
English (human translation):
It falls into this difficulty without any fault of its own. It begins with principles, which cannot be dispensed with, in the field of experience, and the truth and sufficiency of which are, at the same time, insured by experience. With these principles it rises, in obedience to the laws of its own nature, to ever higher and more remote conditions. But it quickly discovers that, in this way, its labours must remain ever incomplete, because new questions never cease to present themselves; and thus it finds itself compelled to have recourse to principles which transcend the region of experience, while they are regarded by common sense without distrust. It therefore falls into confusion and contradictions, from which it conjectures the presence of latent errors, which, however, it is unable to discover, because the principles it employs, transcending the limits of experience, cannot be tested by that criterion. The arena of these endless contests is called Metaphysics.
Yahoo's Babel Fish:
Into this embarrassment it comes without its debt. It begins from principles, whose use is sufficiently proven in the course of the experience inevitably and at the same time by these. With this it (like it also its nature with itself brings) rises ever more highly, on more distant conditions. Since it becomes however more aware of the fact that in this kind its business must remain at any time unfinished, because the questions never stop, then them see themselves forced to take to principles their refuge which exceeds all possible experience use and however seems so unsuspected that also the common people reason thereby stands in agreements. Thus however falls it itself in darkness and contradictions, from which it to decrease can the fact that somewhere hidden mistakes to reason to lie must, which it however not to discover can, because the principles, whose avails itself, since they go beyond the border of all experience, no probierstein of the experience more recognizes. The combat place of these endless disputes is called now Metaphysik.
Google Translate:
In this embarrassment desire to be without their debt. It starts from basic principles to their use during the inevitable and experience at the same time by this sufficiently proven. With this rising (as it is their nature brings with it) are always higher, too distant conditions. Because they will be aware that in this way their business must always remain unfinished because the questions never stop, so she has to turn to their principles to take refuge for all kinds of experience and use exceed nevertheless so unsuspicious seem that the common sense so that people in consents. This plunges but they are in darkness and contradictions from which they can lose weight while that hidden somewhere on the underlying mistakes, but they can not discover, because the principles, which serves its because they have the experience beyond all limits no touchstone of the experience more recognition. The court martial of these endless disputes is now metaphysics.
It is safe to say that machine translation cannot compete with human translation. Both Google and Yahoo get a lot wrong and have some strange output ("It was smelled badly at ease?"), and each get some things surprisingly close. Neither would be suitable for more than trying to gain a quick, cursory understanding of something written in an unfamiliar language.
Translation is without doubt best left to professional translators who are native speakers and who can apply their experience, wit and intelligence to carry the true meaning of the copy from one language to another.