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Since I have not gotten any feedback on the user interface I 
took the liberty to tweek it the best I thought how.  Since I 
consider this new functionality very solid I went ahead and 
created changes to the documentation and test suite.

Per Martin v. Löwis (loewis) instructions I generated a patch 
which hopefully meets his needs.  My CVS access is limited to 
the web interface and thus the patch is based on the latest 
checked in as of today:

python/python/dist/src/Lib/difflib.py -- rev 1.21
python/python/dist/src/Tools/scripts/diff.py -- rev 1.2
python/python/dist/src/Lib/test/test_difflib.py -- rev 1.10
python/python/dist/src/Doc/lib/libdifflib.tex -- rev 1.17

Note, I am not very familiar with .tex but it seemed straight 
forward.  I editted the file by hand and it should be very close 
to what I intended.  Unfortunately I am not set up to convert 
the .tex to HTML.  I may try that next week.