Google Translate text-to-speech not working
The app you are looking for is TTS Extended, search the market for it. I think the app stopped being available with version 2.2 because I can no longer find it on my phone, it is probably integrated now. Since you have 2.1 it should be there for you: Here is a link to the app. I know it works because I used it on my previous droid in conjunction with Google translate, it worked very well with Italian by the way.