Well, I saw that at some point this thread was moved to IMHO due to anecdotal content, so I guess I don’t have to look for any cites here.
As a student in Georgetown’s School of Languages and Linguistics I took a course under the mythical Prof. Beard in Bilingual Education, and this was one of the major focus points, believe it or not. And rather than go into details that I no longer remember and reference books that I only ever skimmed to begin with, to sum it all up the answer is that it depends on the person. But keep the Nobel committee from calling for the moment, as there’s more! In general (according to what I was taught at least), people who are born speaking more than one language actually develop different locations to store the language data, which means that they actually think in a completely different way when using the two. Non-native speakers of a language, no matter what level they reach, tend to store the language information in with their native tongue (often as counterparts, which accounts for the way many multilingual people tend to only have two languages “handy” at any one time, the mother tongue and foreign one being used the most at the time). However, some linguists argue that this can be a slight advantage to those not bilingual from early childhood, as they have a more mathematic understanding of grammar which allows them to avoid many of the pitfalls, particularly in written language, that many “native” bilingual speakers make. Personally I think this is a bit rubbish.
It would be nice to have cites for some of this, wouldn’t it? Oh well, that is the kind of guy I am, I suppose. Of course, when I was learning all this Al Gore hadn’t even invented the internet, so we weren’t getting our info that way (in truth I was in this class about six years ago–I think even the Quakers had websites by then). Instead I will move to a little anecdotal tidbit to end it:
When I was living in Russia (after having studied the language for nine years) with a Russian family whose full knowledge of the English language consisted of the few German words they remembered from their school days (all them langidges is the same anyways), attending a Russian university and even drinking Russian tap water, I was fully emersed in a foreign language. After a few months I started thinking in Russian, dreaming in Russian–even those pre-Prozac voices in my head were in Russian (I added this for comic effect, you see–I still don’t take Prozac), and I almost never had to translate things from English while speaking. Still, whenever I spoke to other English/American students, when I was on the phone with my family, I rarely had to retranslate back from Russian to English. That is not to say that I didn’t/don’t find it difficult to adequately translate certain colloquial phrases, but that my native tongue was always on the ready to express my basic feelings and emotions, even when I hadn’t spoken English in a while (maybe all those Smiths CDs every night tainted the results a bit).
On a completely separate point (as if that last paragraph had one), I have lived in France for the past two years, and I almost never think or dream in French (though certain nightmares involve it quite a bit). Maybe it has something to do with the fact that I like Russian so much more than French? Of course, I would NEVER claim to be multilingual and include French as one of my languages, though it (and lack of use) has helped to eat away at my Russian level. One more reason to hate the bâtards…