I'm running Windows x64 beta 3 on Windows 7. I was just trying to compare several files in one directory to another. File compare options were set to Expand tabs, Ignore trailing spaces, Don't compare newlines, and Source Diff. After getting the list of different files, I ran a diff on one pair and got really weird results -- it showed hundreds of differences even though there are only 3 or 4, and the text of the 'right' file was all garbled. I can't attach the actual files, but I'm attaching screen shots to give you an idea. I didn't get this for all files -- I don't know why this file caused this. If I turn off Source Diff it works OK. If I do a diff of the two files without doing the folder diff first, even with the Source Diff enabled, it works OK.
diff-window.png shows the Diff window with really odd difference highlighting. left-file.png shows the section of the file in the left pane of the diff after exiting Diff. right-file-after-exiting-diff.png shows the file in the right pane after exiting Diff, including weird highlighting in the file even after the Diff has exited. right-file-after-restarting.png shows the file in the right pane after restarting SlickEdit.