It is really a serendipity as I was grappling with the exact same issue a few days back. Although the approach I used was manual, it was quite intuitive.
There is an option to compare documents in word 2007 in the review tab.You can choose to generate a new document with only the changes. Open the change document on a second moniter and manually incorporate changes.
You can also go to Print and select printing the markup in the new document( if present) but as even the most trivial of changes generate a new entry, it becomes difficult to get to the meat of the changes.
Hope this helps.