1. A dynamic translation system comprising: a translator, the translator translating input code into output code and outputting the output code from the translator; a memory device in communication with the translator, the memory device receiving the output code from the translator and storing the output code in the memory device; a system controller, the system controller determining when an exception has occurred; and an interpreter in communication with the translator and with the system controller, wherein when the system controller determines that an exception has occurred, the system controller transfers control to the interpreter and the interpreter begins executing the output code, the interpreter determining when a point is reached in the output code at which application state is recoverable and providing an indication that said point has been reached to the system controller, the system controller transferring control to an exception handler when said indication is received by the system controller.