There is an alternative and it is both open source and free ! From the WinMerge site: There is no indication of the number of differences between the files being diff’ed or even the actual differences on a particular line … The screenshot below demonstrates the basic nature of the diff tool built into Visual Studio Team System. One thing I cannot get used to is the basic diff/merge tool. I have been using Visual Studio Team System 2008 for a while now and am really starting to like the tightly integrated source control and work item functionality. Replace diff/merge tool in Visual Studio Team System with WinMerge
I will reproduce it wholly, because I could not explain it better than him: Replace diff/merge tool in Visual Studio Team System with WinMerge article, having also what arguments you need to pass. There is a more detailed answer on life and technology