Yesterday, Google's Matt Cutts posted a video named How should I handle localized content? and 1 minute and 45 seconds in, Matt addressed a topic on can you use Google Translate to auto-translate your content into languages and then use that content as new domains for those country extensions?
For example, if I want to translate rustybrick.com into Hebrew and place it on rustybrick.co.il, can I use Google Translate to do so?
Here is the video, it should start in the proper place:
This is nothing new. I covered this back in August with my post named Google Says Using Google Translate Can Be Against Google's Webmaster Guidelines.
In short, Google wants your content to be human readable and often, even with Google Translate, using Google Translate for this purpose can be against Google's guidelines.
If you are going to translate your site, use real humans who can do it. If not, then use a solution that won't be indexed by Google. Never use software for translation and if you do, do not let Google index it.
Forum discussion at WebmasterWorld.

Comments:
Syedazizsyedmohamad
03/23/2011 01:24 pm
very good
Ioana
03/23/2011 02:13 pm
Machines are incapable of properly translating a text, people may think a bad translation is no big deal but it really is awful.
****;;;;ders
03/23/2011 06:22 pm
oh sorry
Charter Bus VA
03/24/2011 07:27 am
Here is Similar Story Vanessa Fox covered how Google was content spamming their own index with Google Translate pages. She discovered it via a tweet from @rishil. In short, if you searched site:translate.google.com up came thousands of pages that Google was indexing of a simply auto-translated set of search results.
Rob Abdul
03/24/2011 11:31 am
Thank you Matt, and thank you Tim for asking such an interesting question!
Barry Schwartz
03/24/2011 11:45 am
Yep, we covered that at http://www.seroundtable.com/google-translate-spam-12868.html
PERFECT- IT
03/30/2011 08:11 am
It is not only Google that finds badly translated websites annoying, customers do too.