Re http://www.enworld.org/forums/showthread.php?t=64017 , the Snopes.com urban myth-busters have tried to verify the rumor. So far, no proof that it originated in a study at Cambridge:
http://www.snopes.com/language/apocryph/cambridge.asp
"Origins: This little bit of intriguing linguistic trivia stormed through inboxes in September 2003. That the order of letters within words is relatively unimportant to reading comprehension as long as the first and last letters are in their proper places seems to be self-evident, as demonstrated by the ability of nearly everyone who came across this item to understand what it said (although this is a very general application — results may vary when different types of words and contexts are used), but was there really a university study to this effect?
"This item isn't known to have been prompted by a recent study at Cambridge University (or anywhere else). Its originator is still anonymous, but the Languagehat web site appears to have been the one that popularized it, and Uncle Jazzbeau's Gallimaufrey has some insight into the background of the concept. An ongoing discussion of this subject can be found on Slashdot."
((additional hyperlinks available within original Snopes.com text))
http://www.snopes.com/language/apocryph/cambridge.asp
"Origins: This little bit of intriguing linguistic trivia stormed through inboxes in September 2003. That the order of letters within words is relatively unimportant to reading comprehension as long as the first and last letters are in their proper places seems to be self-evident, as demonstrated by the ability of nearly everyone who came across this item to understand what it said (although this is a very general application — results may vary when different types of words and contexts are used), but was there really a university study to this effect?
"This item isn't known to have been prompted by a recent study at Cambridge University (or anywhere else). Its originator is still anonymous, but the Languagehat web site appears to have been the one that popularized it, and Uncle Jazzbeau's Gallimaufrey has some insight into the background of the concept. An ongoing discussion of this subject can be found on Slashdot."
((additional hyperlinks available within original Snopes.com text))