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Tranlator Plugin 1.2 Not Working

When I switch the translation drop down from “No Translation” to “English to Spanish” (I’ve tried all to the same result) enter my message and hit enter there is a long delay (approx 2-5 seconds) and then my message is displayed in the chat history but the other person never actually receives my IM.

Ideas?

Just as an FYI I have my firewall off. I’ve also tried this on XP, Vista, and Windows 7 workstations to no avail.