I didn't know such a method existed

Yes, there are several systems based on this method but in general they work in one and the same way -they apply sets of linguistic rules defined as correspondences between the structure of the source language and the structure of the target language. At the first stage is made an analysis of the the morphology and syntax. To make the work more precised are used bilingual dictionaries and grammatical rules.

OK, but what if there are no resources and corpuses for some language? This method might work for the most wide-spoken languages but for the rarer ones it would not be a good solution. What method is used to translate to and from languages for which there are no corpuses?

You should create a different topic for this question.

What you are talking about, MetsHievanine, considers the rule-based method but how does this apply to the transfer-based?

In a rule-based machine translation system the original text is first analysed morphologically and syntactically in order to obtain a syntactic representation. This representation can then be refined to a more abstract level putting emphasis on the parts relevant for translation and ignoring other types of information. The transfer process then converts this final representation (still in the original language) to a representation of the same level of abstraction in the target language. These two representations are referred to as "intermediate" representations. From the target language representation, the stages are then applied in reverse.

Also look at the whole article in wikipedia http://en.wikipedia.org/wiki/Transfer-b ... ranslation

The driving range

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