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From eclipse.tools: I would find it very useful to be able to do a visual diff between source in an Eclipse project and source in another external directory, and merge differences into the project. This is because when I take code home to work on, merging back into the stream when I return to work involves using an external diff tool to compare my changes with 'Head'. It seems silly to have to do this when Eclipse already has a nice visual diff.
Eclipse does not support external resources in general. Since it is always possible to import external resources into a workspace a workaraound exists for 2.0. Will reconsider after 2.0.
would importing the external source into a project X allow me to compare it with source in project Y?
Yes. And if project Y already exists you can just "Refresh from local" instead of going through a full import.
Excellent! I never saw this feature, very impressive.
reopened to mark as duplicate
*** This bug has been marked as a duplicate of 21817 ***