Even thogh the link above would work, I think that's going to be more of a challenge and cumbersome to implement. The way I would do it is to use an Event Receiver. Something like this should suffice. (I've left the last two methos not implemented:
public override void ItemUpdating(SPItemEventProperties properties)
{
base.ItemUpdating(properties);
var li = properties.ListItem;
string currentContent = li["FieldToCheck"].ToString();
var liVersions = li.Versions;
int PreviousVersionID = liVersions[liVersions.Count - 1].VersionId;
string previousContent = li.Versions[PreviousVersionID]["FieldToCheck"].ToString();
var difference = DoComparisonAndReturnDifference(currentContent, previousContent);
SendEmail(difference);
}