Should school be that hard for a child of average intelligence? I would think not. He clearly has some LD, and from my non-expert perspective, it sounds very much like dyslexia. For a kid with (not mild) dyslexia, to be able to keep up with age peers would be really difficult with no accommodations. Thus, and from what you describe, I do think he could be gifted. My guess is that at least he is very bright. The 106 doesn't seem like a good depiction; but it might be.
I would look for extensive testing (IQ, achievement, and batteries to test for dyslexia and other LDs).
