All right, here's a translation I did with help from my Japanese teacher -

[b]Sha-la-la-lla[/b]

Because of the sorrow I was always gloomy
It seemed like a joke
My heart that is entwined in that entanglement is going to be released
Your laughing voice covers my tomorrow
I was sitting on top of a transparent cloud, looking for the dawn
I will surly be reborn differently

While two people sway, Sha-la-la-lla
There is no need for words, Sha-la-la-lla

At the end of the season, two people
joked until the morning
Anything that is pleasant, anything that my hand touches
Snapping our fingers and whistling, we never tire, we do not sleep
And then I sing only for you.

While two people sway, Sha-la-la-lla
There is no need for words, Sha-la-la-lla

Surly there is reason to believe that I will be reborn different [size=84]<this is not present on the lyrics sheet, if I remember correctly, but is in the song>[/size]

While two people sway, Sha-la-la-lla
There is no need for words, Sha-la-la-lla

While two people sway, Sha-la-la-lla
Nothing more is needed, Sha-la-la-lla

Sha La La La sounds like a porn groove to me, but I love it to death. Thanks.

You win.

some suggestions!

"My heart that is entwined in that entanglement is going to be released" -> i'm going to free my heart that's tightly entangled

'ganjigarame ni' is more like 'tightly (bound)'. and in general, unless there's some strong reason to keep the phrase in passive voice, i tend to switch to active, because it's more natural (and usually correct) in english.

"Your laughing voice covers my tomorrow" -> i don't think 'covers' is the correct meaning of 'nurikaeru'. the definitions i found were 'repaint' or 'rewrite'.

"I was sitting on top of a transparent cloud, looking for the dawn" -> 'watching/looking at (the) day break/sunrise' would be more correct. 'sagasu' would be 'looking for, searching'.

"I will surly be reborn differently" - 'reborn differently' is awkward... just 'reborn' covers the meaning of 'umarekawaru'.

"While two people sway, Sha-la-la-lla" -> this is literally correct, but given the context i suggest using 'we' or something similar (throughout he is speaking to 'you' - kimi) everywhere it says 'futari'... it's a romantic song and 'futari' can imply a couple, 'me and you', 'the two of us', etc.

"joked until the morning" -> this makes it sound like they were just telling jokes to each other. it should be more like 'joked around', 'fooled around', 'flirted'... something along those lines.

"Anything that is pleasant, anything that my hand touches" - 'te atari shidai ni' is better translated as 'at random' (it's not literal). the 'ni' makes it an adverb. i can't be sure on the rest since i don't have the kanji lyrics handy. it also looks like you missed a line after this, looking at the romanization mare did.

"Snapping our fingers and whistling, we never tire, we do not sleep" -> snapping our fingers and whistling, we never sleep (you threw in an extra phrase, that's all)