Experiencing the same issue here. After upgrading to Lion, Clicking the 
"Local Changes" button no longer launches FileMerge. The solution above did 
not work here. Console returns "FileMerge.sh: No such file or directory".

Any suggestions to fix?

On Thursday, July 28, 2011 12:37:04 PM UTC-7, Kent wrote:
>
> After I installed Lion on my development mac, I was unable to use the 
> FileMerge script built-in to Versions.app. After creating a sym link: 
>
> $ cd /usr/bin; sudo ln -s /Developer/usr/bin/opendiff 
>
> Versions.app was still unable to use FileMerge. So I copied the 
> FileMerge.sh script from Versions.app and moved it into the Compare 
> Script folder: 
>
> $ cp /Applications/Versions.app/Contents/Resources/CompareScripts/ 
> FileMerge.sh ~/Library/Application\ Support/Versions/Compare\ Scripts/ 
> $ chmod +x 
>
> Now FileMerge works again.

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