Given two directory trees, "vsdiff DIR1 DIR2" brings up listing of all the files that are different. Clicking on one of those files opens up a separate diff window with the two files. With beta 3, the right-hand file is always read-only regardless of the file permissions. Reversing the order of directories "vsdiff DIR2 DIR1" will let you edit the left-hand file (although DIR1 files are now read-only)
If I diff the files directly "vsdiff DIR1/foo DIR2/foo" then the right-hand file is not read-only.