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Updated the patch as follows:

1) Now handles expanding tabs and representing them with an
appropriate HTML representation.
2) moved default prefix to class-level

NOTES

N1) See _libdifflib_tex_UPDATE.html and
test_difflib_expect.html for an example of how tab
differences get rendered.

N2) I've attached the patch (you will also need the new file 
test_difflib_expect.html).   I've zipped the patched code as 
well as example side by side differences of the patch.  Diffs 
ending with _UPDATE.html show differences between the 
patched code and the last version of the patched code (what 
I've done since my last posting).  Diffs ending with 
_PATCH.html show differences between the patched code 
and what I obtained from CVS a couple weeks back:

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