During reading activities, dyslexia's neural signature appears to be decreased activation of parietotemporal system and occipitotemporal system sites associated with reading (which are typically found in the left hemisphere of the brain), and overactivation of a left hemisphere frontal region site also associated with reading (based on a study by Shaywitz et al., 2002).
Contrary to previously accepted beliefs, Shaywitz & Shaywitz (2008) substantiate their claim that attentional mechanisms may play a role in the reading process by highlighting neural networks that reading and attention share. They also suggest that targeting attention as one component of treating dyslexia may assist dyslexic readers in not only learning to decode words, but in learning to decode them more fluently and automatically.
Reading deficits can be caused by impairment(s) in a variety of areas including attention, phoneme-grapheme correspondence, and semantic understanding. Thus a student's capabilities in all of these areas should be taken into account and targeted as necessary. Multi-sensory approaches can aid learning, and any approach to remediating a literacy impairment should ideally "build up" in a logical manner. Don't be afraid to teach students linguistics and etymology if they prove to be useful tools! Finally, bear in mind that understanding spoken sounds can prove a crucial step towards deciphering written words.
Lyon, G.R., Shaywitz, S.E., & Shaywitz, B.A. (2003). A definition of dyslexia. Annals of Dyslexia,
53(1), 1-14.
Shaywitz, B., Shaywitz, S., Pugh, K., Mencl, W., Fulbright, R., Skudlarski, P., et al. (2002).
Disruption of posterior brain systems for reading in children with developmental dyslexia.
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Shaywitz, S.E., & Shaywitz, B.A. (2008). Paying attention to reading: The neurobiology of
reading and dyslexia. Development and Psychopathology, 20, 1329-1349.
doi:10.1017/S0954579408000631