The movie this song is from is also called Anbe Sivam. It is one of Kamal Hassan´s most poignant movies and I recommend it to everyone if they can find it with subtitles. Kamal has sung this himself! Here is the link to the song so you can listen as you enjoy the translation.
http://www.youtube.com/watch?v=ZmTsTt7S0Wc
**Yaar yaar sivam? Nee naan sivam,
Vaalvae dhavam, anbae sivam,**
Who all are god? You and me are god.
Life is a prayer/meditation, compassion is god.
**Aatthigam paesum adiyaarkellaam sivamae anbaagum,
Aatthigam vaesum nallavarukkoe anbae sivamaagum,**
To the devotees of Shiva, god will become compassion
To good people who are Atheists, compassion becomes god.
**Anbae sivam, anbae sivam, endrum,
Anbae sivam, anbae sivam, engum,
Anbae sivam, anbae sivam, endrum,
Anbae sivam, anbae sivam, engum,**
Compassion is god, compassion is god, any time
Compassion is god, compassion is god, everywhere
Compassion is god, compassion is god, any time
Compassion is god, compassion is god, everywhere
**Idhayam enbathu sathaithaan endraal erithalal thindruvidum,
Anbin karuvi idhayam endraal saavai vendruvidum,**
If the heart is just flesh, the burning fire could destroy it
If the heart is a tool of compassion, it would defeat and transcend death
**Yaar yaar sivam? Nee naan sivam,
Anbin paathai saernthavanukku mudivae illaiyadaa,
Manathin neelam edhuvoe, athuvae vaalvin neelamadaa**
Who all are god? You and I are god
For one who joins the path of love, there is no end
The length/size/limit of your mind* is the length/limit of your life.
*A short note on the word ´manam´: In English there is a dichotomy between mind and heart where mind is considered rational and heart is more emotional. In Tamil, ´idayam´ is heart and ´manam´ is more like a combination conscience and heart though it implies mind too. The word for intellect in Tamil is ´arivu´.
Shiva/Sivam is a god. His mythology has little to do with the story. The higher meaning is that god is in every act of compassion and hence we have that in ourselves to act upon. We are god when we are loving, kind and compassionate.