Lots of research coming out on this now.
Stanford University: Fumiko Hoeft details here The research was published Dec. 20, 2010, in the Proceedings of the National Academy of Sciences.
They found that the standardized tests failed to predict future reading improvements, but the brain imaging did.
Hoeft suggests that youths with dyslexia recruited right brain frontal regions to compensate for their reading difficulties, rather than regions in the left side of their brains, as typical readers do.
More reading improvement was seen in dyslexics with greater activity and structural connectivity in the brain’s right hemisphere (pictured).
Of course studies on Fast ForWord implementations have demonstrated this. See Paula Tallal's and Nadine Gaab's recent studies here
And the Stanford University's study
Dyslexic children's brains operate more like those of normal readers following training designed to help them hear sounds in words, Click Here