If this is not telling you something you already know; launched at the end of January 2010
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Google Transliteration IME is an input method editor which allows users to enter text in one of the supported languages using a roman keyboard. Users can type a word the way it sounds using Latin characters and Google Transliteration IME will convert the word to its native script. Note that this is not the same as translation – it is the sound of the words that is converted from one alphabet to the other, not their meaning. Converted content will always be in Unicode.
Google Transliteration IME is currently available for 14 different languages - Arabic, Bengali, Farsi (Persian), Greek, Gujarati, Hindi, Kannada, Malayalam, Marathi, Nepali, Punjabi, Tamil, Telugu and Urdu.