I ran into nearly the same issue. I uninstalled Xcode, reinstalled
10.7.3, installed Xcode 4.3.2 and find that Versions can no longer
find opendiff even though it's there in /usr/bin/opendiff.

xcode-select version is 307
xcode-select path was set to /Applications/Xcode.app but is reported
as /Applications/Xcode.app/Contents/Developer

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