We give an overview of a MT research project jointly undertaken by Xerox PARC and XRCE Grenoble. The project builds on insights and resources in large-scale development of parallel LFG grammars. The research approach towards translation focuses on innovative computational technologies which lead to a flexible translation architecture. Efficient processing of ‘packed’ ambiguities not only enables ambiguity preserving transfer. It is at the heart of a flexible architectural design, open for various extensions which take the right decisions at the right time.

