Diffinity is a free diff and merging tool for Windows focusing on accurate and easy-to-read source code diffs.

It will compare the contents of two text files and show all differences line by line and which individual characters/words differ.

Diffinity Features:

Improved diffing quality for XML and c-style source code
Thumbnail view of all diffs
Differentiates between changed, removed, and added lines
Instance highlighting - double click or search for a word to show all instances of it
Syntax highlighting
Supports Unicode and auto detects encoding (and warns if encoding mismatch)
Customizable interface
In-line diffs live updated as you type
Windows Explorer shell integration

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