I would like to know if there is a way to compare rdl files with each to see where a difference may lie. Basically I have the orginal SSRS 2008 r2 report and know it has been drastically modfied based upon new requirements. I would like to be able to compare the original SSRS 2008 r2 rdl (file) with the new SSRS 2008 r2 rdl (file). I want do accomplish this task for code inspections. I want a group of my co-workers to look at the compares to see if there 'better' ways to change the SSRS 2008 r2 reports based upon user requirements.

You could compare the xml code of these two files and you can come to know the difference. there is an option of converting or opening the report in xml. HTH, Ram

When I converted the report to xml, what tool can I use to compare the differences with? Does SSRS 2008 r2 have such a tool? If not, would I need to use something like textpad? Does sql server management studio have a tool like this for comparsion purposes?

Nope ! SQL server does not have a tool for comparison purporse. You could use a SVN tool which will have several versions of the copy of the same report and when you overwrite this file it will save the previous versions as well. You could compare the two versions in the xml mode to see what are the differences that are showing up ! HTH, Ram