logs off on translate

Sure about the "logs me out" not just giving you a "page can not be found"?

My guess would be what he's seeing is the translation of the page as if he were logged out.

This is inherent to the modules inner working; google is instructed to load the page and translate it. But google's servers are not 'logged in' to the site. So even though you are logged in yourself, the translated page is for a user that is not logged in.

Actually if your guessing is right about he gets a page that a guest gets then that's quiet normal.
Yes, it's exactly as you said, the module actually requests Google to translate the page not actually sending the page itself to Google.
I belive I will be working on this for the upcoming release of the module.
Thanks.