Gale,

You sound like an extraordinarily prepared Ph.D. student. Not only do you have a good undergraduate record, but can back that up with excellent performance in your Master's program. Even more impressively, you've come to the field with a significant degree of commitment and preparation, as indicated by these milestones and your decision to await admissions until 2008. Admissions committees will certainly note all of these positives.

As for your foreign language difficulty, I can certainly relate. I took Spanish in high school, Latin in college, and Berlitz tapes of German and Italian thereafter... and yet am fluent in none of the above. It's a frustrating (and potentially antiquated) part of many Humanities graduate degrees, but one that must be approached seriously.

For the sake of clarity, I take your question as having two parts: will this affect your admissions, and what should you do about it?

Admissions committees will very rarely take foreign language fluency into consideration with regard to admissions. Obvious exceptions to this rule could be found in the modern languages, diplomacy degrees, or other internationally-focused fields. For the most part, they will expect you to be able to pass a test, which as you have said you have been "unmotivated" to complete.

On the other hand, this trouble is sufficiently compelling to occupy your thoughts two years before admissions, which suggests a larger issue. If you have serious misgivings about your ability to complete a foreign language course, I think you would be best advised to approach it now, to get it out of mind. The reason is simple. Graduate school will present enough obstacles, concerns, and frustrations to derail more than 50% of their matriculants. Do you want to be one of those who actually completes the program? Remove some doubt from your mind and get this out of the way beforehand. Then you can focus on what you really need to do in the rigorous examination process of a doctoral degree.

Oh, and be sure to make note of this extra effort in your Statement of Purpose when you do apply. Perhaps the most important trait of successful graduate students is tenacity, and if you can rise above your own frailties, you'll be head and shoulders above your less experienced competitors.

Best of luck!

Dave