Windows Live Translator is now integrated into Office . Users can use this feature using the Research pane in their office application. Windows Live Translator will come to Office 2003 and Office 2007 as an automatic update. Office users can also manually install Windows Live Translator to their Office application.

We have officially handed over our code to the Microsoft Office team for the integration of the translation tool directly in the Research Task Pane.  Once they have finished their own testing and "flipped the switch" on their side, the feature will auto-update in existing versions of Office.  I’ll blog about that here again when that happens - at that point, no additional setup steps will be necessary.

Office users can find installation instruction here

Download and Install Windows Live Translator in Office System

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