dwdiff is a front-end for the diff program that operates at the word level instead of the line level. It is different from wdiff in that it allows the user to specify what should be considered whitespace, and in that it takes an optional list of characters that should be considered delimiters. Delimiters are single characters that are treated as if they are words, even when there is no whitespace separating them from preceding words or delimiters. dwdiff is mostly commandline compatible with wdiff. Only the --autopager, --terminal and --avoid-wraps options are not supported.
WWW: http://os.ghalkes.nl/dwdiff.html
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