I have 2 text files and what I am after is to:

1) Create a text file of the DIFFERENCES between those 2 files
2) Display the differences on the console as it processes

GREP? with piping? ie:

$ diff text1 text2 | diffout | tty1

This above is an example I don't think diff exists, I am just thinking out loud bad idea I know, as to where to go accomplish this.

Thanks.