If you give it an pair of empty folders, the multi-diff window opens, then a model dialog opens on top "No files match these parameters".
The mouse cursor is a checkered circle.
#1 The window on top cannot be dragged, but I can drag the window under it.
#2 When you click OK to dismiss, both windows close but VSDIFF stays running. [size=78%]Oddly enough, Command-Q works in this case :-)[/size]