Hmmm, I think they changed the test since koochkooch (who answered that question in the thread Ben gave a link to) sat it - the 2011 HSFY Information Manual that came with the course approval pack says there are 3 sections:
1, Reading Comprehension, where we read a short article and write a showrt answer to 5 questions,
2, Listening Comprehension, where we listen to 5 short scenarios and answer a question about each one, and
3, Written Communication: a 200-word essay using one of two topics.
It would appear that there is no dictation, not anymore anyway, lol.
As skyglow said, it's to identify those who struggle with everyday English (the fact that those who fail and fail a second test will be made to do a paper called "English for University Purposes" is a good indication of this, lol), so I don't think we need to worry about this - I mean, the fact that we're communicating in English on an English-based forum indicates that we're most likely not going to struggle with everyday English, lol.