diff --git a/lib/reporters/base.js b/lib/reporters/base.js
index 35c90916dd..b8d9f8224b 100644
--- a/lib/reporters/base.js
+++ b/lib/reporters/base.js
@@ -175,7 +175,7 @@ exports.list = function(failures){
 
     // actual / expected diff
     if ('string' == typeof actual && 'string' == typeof expected) {
-      msg = errorDiff(err, 'Words', escape);
+      msg = errorDiff(err, 'WordsWithSpace', escape);
 
       // linenos
       var lines = msg.split('\n');
diff --git a/package.json b/package.json
index abf6ef96ea..a699456719 100644
--- a/package.json
+++ b/package.json
@@ -29,7 +29,7 @@
     "commander": "0.6.1",
     "growl": "1.7.x",
     "jade": "0.26.3",
-    "diff": "1.0.2",
+    "diff": "1.0.7",
     "debug": "*",
     "mkdirp": "0.3.5",
     "glob": "3.2.3"