Ratcat
This is based on info from the Official Website and is IMHO probably the closest thing to cannon currently as it's the most up to day.
Anyway, if you look at the two character desciptions for Threepio then there is a big difference in the functions Threepio performs.
Episo
"C-3PO is intended as a household servant. In spite of his unfinished state the droid can already perform several of his programmed functions, including translation in a number of languages."
Original Tri
"C-3PO is a protocol droid whose primary functions are etiquette and translation"
So yes he does translation, but in EpI he's a household tool, (3PO the vacume cleaner
) and in the OTY he's a fully fledged protocol droid.
I am guessing that when he leaves Tatooine he will recieve his gold coating and have his functioning upgraded to bring him into line with other Cybot Galactica protocol droid models.
Just a thought.
Anyway, if you look at the two character desciptions for Threepio then there is a big difference in the functions Threepio performs.
Episo
"C-3PO is intended as a household servant. In spite of his unfinished state the droid can already perform several of his programmed functions, including translation in a number of languages."
Original Tri
"C-3PO is a protocol droid whose primary functions are etiquette and translation"
So yes he does translation, but in EpI he's a household tool, (3PO the vacume cleaner

I am guessing that when he leaves Tatooine he will recieve his gold coating and have his functioning upgraded to bring him into line with other Cybot Galactica protocol droid models.
Just a thought.