As promised a few weeks back, Square Enix will be releasing a series of recap videos ahead of Final Fantasy XIII-2's December release. The first of these, Episode-1, became available for viewing at the game's official site. Access the clip here:
The Lost Report series are actually video clips rather than novellas. The clips are told from the perspective of Rygdea and Yaag Rosch and will span six episodes. The first volume, titled Gensou no Rakuen (roughly, "Fantasy Paradise"), provides a recap of the Cocoon world.
Square Enix has also posted the text of FFXIII's Episode i novella, which tells the aftermath of the game's story.