by http://www.skype.com/intl/en-us/get-skype/on-your-computer/windows/beta/
http://skypetranslate.com/
Skype Translate - Instant chat translation from and to any language
Skype Translate is tool that allows you to translate language real time during a text chat on Skype. You can change to and from language for any Skype text chat session.
This tools sits on the system tray, right click to open settings box. There you can select languages for 2 users doing text chat on Skype. After the language is selected, you can type in your own language and text will be shown in language selected for the recipient.
Skype Translate automatically detects your friends' language based on their profile settings.
