Really? It just makes me feel sea-sick. As my eyes scan the words, I can't help the feeling that the colours are changing and staying the same at the same time, it's a most disconcerting optical illusion.
anecdotal [1] evidence suggests it works for me, plus it works for me, plus it makes reading long tests more enjoyable and appealing, but I get where you are coming from, it could be a distraction in your case. I guess no size fits all once again.
[1] http://www.beelinereader.com/challenge