When working on my free time I tend to use Subversion for my source control needs but some clients have a lot of investements in the Microsoft sphere and thus prefer Team Foundation Server. It´s an ok alternative to Subversion but Visual Studio´s support for merge and diff is just plainly not up to standards. I´ve seen it do a lot of wierd stuff to my files If it even dares to touch them. So instead I found some resources on how to configure VS to use Tortoise Merge and Diff for these actions, neatly integrated in the DevEnv and it works like a dream, it´s a salute to Microsoft that they do make it possible for vendors who are better experienced to enhance the DevEnv.
Here´s a good resource on how to configure Visual Studio for other tools, i´ve tested it with Tortoise Merge/Diff in both VS 2010 and 2008: