I am using Team Foundation Server (TFS) for Visual Studio 2005.
Whenever i wish to compare two file\'s versions TFS displays a window with the differences.
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There is no ability to change the orientation of the built-in diff/merge utility. There are a lot of third-party tools (some free, some not) to choose from. Check out this post from James Manning where he tracks the correct command/argument values to use when configuring various tools for use by Team Foundation's compare and (content) merge operations.