I like Meld as a visual diff/merge tool. You can also use it as the default in TortoiseHg. Open TortoiseHg's Workbench. Go to File ยป Settings, make sure the global settings tab is active. Click Edit File, if it doesn't yet exist create a section called [extdiff], and under [extdiff] add cmd.meld = /path/to/meld. For Windows it would be something like cmd.meld = C:Program Files (x86)Meldmeld.exe. From the command line you should be able to use hg meld to get your diff shown in Meld.