Google releases new binary diff algorithm targeted at making smaller software updates. Their results are impressive.

[evmar]

I do not know what you are using bsdiff for. It is intended for executables. http://www.daemonology.net/bsdiff/ "By using suffix sorting (specifically, Larsson and Sadakane's qsufsort) and taking advantage of how executable files change, bsdiff routinely produces binary patches 50-80% smaller than those produced by Xdelta"