Louder than Words by Benjamin K. Bergen is a new (published October 2012) book on embodied cognition that summarizes research supporting the idea that we understand language by mentally simulating the events described, using the same parts of the brain that perceive such events.

I'm in the middle of the book right now; it's a quick read. I haven't read any of the original research, so it's difficult for me to comment on the book's quality. I don't necessarily recommend the book, but it seemed like the sort of thing LW should know about if no one's mentioned it already.