Making a word difference using the ExtdiffExtension and GNU wdiff.

Steps:

  1. Download cwdiff, a shell script, which colorizes wdiff output

  2. Enable ExtdiffExtension 

  [extensions]
  hgext.extdiff =
  1. Add wdiff to 

  [extdiff]
  cmd.wdiff = wdiff
  #add --no-color below, if you dislike colors!
  opts.wdiff = --diff --ab
  1. Run 

$ hg wdiff