TextDiff can compare two text files or two diferent folders. It help you compare two text files, or two diferent folders. While now a fairly comprehensive file & folder compare/merge utility, it was originally written to showcase the speed and accuracy of the TDiff component.

Folder compares: double click modified (green) files to view file differences
File compares:
1. a very fast compare algorithm
2. blank characters and case can be ignored during a compare operation
3. easy navigation between differences
4. easy two-way merging
5. in-place text editing
6. search and replace text
7. multiple undo/redo of text changes
8. generates a report of file differences

TextDiff Features:
1. customizable color highlighting of differences
2. drag and drop enabled
3. accepts commandline parameters for file and folder comparisons

The license of this software is Freeware, you can free download and free use this file compare software.