When it comes to diff'ing and merging the best tools that i've ever come with, has been Araxis Merge it is really an amazing product, but since we consider the price a bit steep to purchase a license to everyone) we stick with WinMerge that is an open source diff and merge utility. It is not a contender for Araxis, but it does a pretty decent job.
For the past two months, i've been hearing Rodrigo complaining constantly about WinMerge. So many colors, what all these colors mean? why this, and why that. A real bugger. Since i've read the on Erik Sink blog, that SourceGear released DiffMerge a free diff & merge utility, that i've been telling him "why don't you try DiffMerge? It's free and should be good. SourceGear usually releases pretty good stuff". Everytime he complained about winmerge i told him that.
This week he finally caved in, and tried it. For the feedback he gave me, it is really a nice tool.
Now the tune has changed, but i still have to hear him all day. *sigh*. But now instead of complaints, i have to hear praises about DiffMerge. Look at the nice colors, look at this, look at that.
So according to his feedback, this is a tool worth having if you can't afford Araxis. :-)
You can download it here.