To configure git to use wdiff to compare files (which can be useful when working with text files that wrap differently even for small edits), add the following to .git/config
[difftool "wdiff"]
cmd = /usr/bin/wdiff -l ${LOCAL} ${REMOTE} | less
Then you can use wdiff by calling
git difftool --tool=wdiff ...
Update Mar 17, 2009 Stefano Zacchiroli shared the git diff
--color-words option, which does the same thing, but is a little less clunky
in terms of how it uses th pager.