My mom has very low vision also...
she just got a color low vision magnifier - CCTV
for paperwork , ads, magazines, recipes & photos
She doesn't really use the computer enough to set up something like Dragon, she can still write cards, checks & letters with the use of the CCTV.
I found a video with description for steps to take for setting iPhone up with dragon, it seems that you did all the steps, unless I missed something.
here's the link in case you didn't find it yet, or want to double check.
http://www.nuance.com/videoplayer/vi...videoPage=true
a little more detail here in the dragon answer/support pages-
Using the Dragon remote microphone application for the iPhone with Dragon NaturallySpeaking 11.5
http://nuance.custhelp.com/app/answe...OVd4b1VqUWs%3D
Does your wifi have a security key or code? WEP or WPA?
might need to add that somewhere so they can connect???
but
if the pc can 'see" the phone & the phone can "see" the wifi & pc??
- it must be something in Dragon that needs to be changed for dragon to use the recording/dictation.