A lot of people complain loudly and frequently about what they call "interpretive translation". Most of these people are criticizing what is commonly called dynamic translation, which includes translations that tend to translate the sense of an expression as opposed to favoring the formal properties of the sentence. Either favoring can obscure the other, and good translators will know how to find the right balance to express the original meaning best. But the complainers don't understand the complexities of translation very well, or they would realize that sometimes capturing the sense of the original means sacrificing the ability to capture its form. Thus translations such as the NIV, TNIV, or NLT will come under their wrath, and they will favor translations such as the ESV, NASB, or NKJV.
One deep irony of this is that lots of interpretive translation goes on in those translations that people are, following the ESV translators, now calling "essentially literal". Wayne Leman points out one example. A lot of these translations that are supposed to avoid interpretive translation do exactly that all the time in ways that their supporters consider the right way to translate those passages. Wayne's example is in capitalizing words like 'son' or 'man' when the translators interpret them to be referring messianically to Jesus. But this is indeed an interpretation, even if the interpretation is based on other scriptural passages that quote it and apply it to Jesus.
Someone wanting to translate this way might defend it on the grounds that interpretations based on other parts of the Bible are infallible and thus can serve as the good kind of interpretation. After all, if Hebrews or Acts quotes Psalm 2 about Jesus, then can't we be 100% sure that it's simply talking about Jesus? If we believe the Bible to be infallible in its quotations, then this kind of interpretation is God's own interpretation, and thus it's true. Whats right about this is that someone who takes the Bible to be infallible should see the Bible's quotation of itself as infallible, i.e. it couldn't be an error in quotation. What's wrong about this argument, however, is that our interpretation of what the quotation is doing might be wrong. If Acts 13 applies Psalm 2 to Jesus, that doesn't mean its original referent is Jesus. It might be referring to the Davidic line in general in most of what it says, with Jesus representing the ideal Davidic king and thus fitting into its reference but not encompassing the entirety of its reference. Those who capitalize the pronouns about Jesus or the word 'son' are thus engaging in the bad kind of interpretive translation in this case, because it might actually give the wrong result.