Improve diff display of minor changes within a line

I'm having trouble coming up with meaningful diff's with confluence. Try the following:

1) Create new page with two paragraphs of text, save.
2) Start editing, remove one word in the first paragraph, add one to the second.
3) Diff the versions

The diff claims both paragraphs of text have been removed in entirety and new paragraphs have been added. Strangely it visualizes the one word changes in the removed paragraphs.

See the following as a sample

http://confluence.atlassian.com/pages/diffpages.action?pageId=1455&originalId=1456

Other sample would be 1) Create a page with 10 lines and save, 2) Change one word in five random lines, 3) Diff - you get a report that the changed lines have been removed and new lines have been inserted in their place with no "this word was removed / added" diffs at all.