I'm not sure if this would be appropriate for your students but I like a lot of the technology that helps put written word into speech. Intel has a reader that looks promising. I also have Read Write Gold that is installed on each computer and all of our leveled reader stories have the capability to have students listen to the story as well as read them. You can also use Text to Speech features in Excel. It's unfortunate that it's no longer available in the 2007 Microsoft Office programs.
Students with dyslexia need several opportunities to work hands on. Most dyslexia students can teach themselves how to solve problems and and overcome learning disabilities when most students cannot. They will teach themselves how to perform in the classroom with limited accommodation because they choose not to expose their conditions. My Daughter was diagnosed with dyslexia during her first year of college. We had no idea she was having trouble in school because she made mostly A and B's. She taught herself how to be effective in the classroom by reading assignments early, watching the teacher closely and writing her thoughts down several times when she became confused. During her college years it became harder for her to keep up. This is when one a good teacher noticed the symptoms and had her assessed. She is doing great now, but she will not ask for help on anything academic.
The bulk of my clasroom experience is in First Grade, so I taught a lot of kids to read! During my career, I was fortunate in being able to undergo a number of Professional Development series' in Reading Instruction models. I found that blending these various methods I learned was the way to go, with particular attention to the strengths and deficiencies of individual readers. As we all probably know, a reading textbook anthology series tries to include the most currently popular methods of instruction, but there is no substitute for a teaching artist- one who can blend and mix a wide variety of techniques in individual and small-group prescriptive, hands-on teaching.
I recommend you look into the Spalding Writing Road to Reading method, the Reading Recovery method (developed in New Zealand and Australia) and any other strong research-based methods,. I do believe that children who are truly dyslexic can be assisted in discovering and practicing ways to "crack the code" of the written language.
Good luck on your search- I'm sure there are some technologies that would help, but in teaching a child to read, I'm in favor of good old fashioned hands-on teaching.