--- a/mercurial/commands.py	Sun Nov 20 19:14:36 2011 +0100
+++ b/mercurial/commands.py	Fri Nov 18 12:04:31 2011 +0100
@@ -106,15 +106,19 @@
     ('', 'nodates', None, _('omit dates from diff headers'))
 ]
 
-diffopts2 = [
-    ('p', 'show-function', None, _('show which function each change is in')),
-    ('', 'reverse', None, _('produce a diff that undoes the changes')),
+diffwsopts = [
     ('w', 'ignore-all-space', None,
      _('ignore white space when comparing lines')),
     ('b', 'ignore-space-change', None,
      _('ignore changes in the amount of white space')),
     ('B', 'ignore-blank-lines', None,
      _('ignore changes whose lines are all blank')),
+    ]
+
+diffopts2 = [
+    ('p', 'show-function', None, _('show which function each change is in')),
+    ('', 'reverse', None, _('produce a diff that undoes the changes')),
+    ] + diffwsopts + [
     ('U', 'unified', '',
      _('number of lines of context to show'), _('NUM')),
     ('', 'stat', None, _('output diffstat-style summary of changes')),
@@ -215,7 +219,7 @@
     ('n', 'number', None, _('list the revision number (default)')),
     ('c', 'changeset', None, _('list the changeset')),
     ('l', 'line-number', None, _('show line number at the first appearance'))
-    ] + walkopts,
+    ] + diffwsopts + walkopts,
     _('[-r REV] [-f] [-a] [-u] [-d] [-n] [-c] [-l] FILE...'))
 def annotate(ui, repo, *pats, **opts):
     """show changeset information by line for each file
@@ -270,13 +274,15 @@
     m = scmutil.match(ctx, pats, opts)
     m.bad = bad
     follow = not opts.get('no_follow')
+    diffopts = patch.diffopts(ui, opts, section='annotate')
     for abs in ctx.walk(m):
         fctx = ctx[abs]
         if not opts.get('text') and util.binary(fctx.data()):
             ui.write(_("%s: binary file\n") % ((pats and m.rel(abs)) or abs))
             continue
 
-        lines = fctx.annotate(follow=follow, linenumber=linenumber)
+        lines = fctx.annotate(follow=follow, linenumber=linenumber,
+                              diffopts=diffopts)
         pieces = []
 
         for f, sep in funcmap:

--- a/mercurial/context.py	Sun Nov 20 19:14:36 2011 +0100
+++ b/mercurial/context.py	Fri Nov 18 12:04:31 2011 +0100
@@ -7,7 +7,7 @@
 
 from node import nullid, nullrev, short, hex
 from i18n import _
-import ancestor, bdiff, error, util, scmutil, subrepo, patch, encoding
+import ancestor, mdiff, error, util, scmutil, subrepo, patch, encoding
 import match as matchmod
 import os, errno, stat
 
@@ -433,7 +433,7 @@
         return [filectx(self._repo, self._path, fileid=x,
                         filelog=self._filelog) for x in c]
 
-    def annotate(self, follow=False, linenumber=None):
+    def annotate(self, follow=False, linenumber=None, diffopts=None):
         '''returns a list of tuples of (ctx, line) for each line
         in the file, where ctx is the filectx of the node where
         that line was last changed.
@@ -460,8 +460,13 @@
                     without_linenumber)
 
         def pair(parent, child):
-            for a1, a2, b1, b2 in bdiff.blocks(parent[1], child[1]):
-                child[0][b1:b2] = parent[0][a1:a2]
+            blocks = mdiff.allblocks(parent[1], child[1], opts=diffopts,
+                                     refine=True)
+            for (a1, a2, b1, b2), t in blocks:
+                # Changed blocks ('!') or blocks made only of blank lines ('~')
+                # belong to the child.
+                if t == '=':
+                    child[0][b1:b2] = parent[0][a1:a2]
             return child
 
         getlog = util.lrucachefunc(lambda x: self._repo.file(x))

--- a/mercurial/help/config.txt	Sun Nov 20 19:14:36 2011 +0100
+++ b/mercurial/help/config.txt	Fri Nov 18 12:04:31 2011 +0100
@@ -227,6 +227,24 @@
    processed before shell aliases and will thus not be passed to
    aliases.
 
+
+``annotate``
+""""""""
+
+Settings used when displaying file annotations. All values are
+Booleans and default to False. See ``diff`` section for related
+options for the diff command.
+
+``ignorews``
+    Ignore white space when comparing lines.
+
+``ignorewsamount``
+    Ignore changes in the amount of white space.
+
+``ignoreblanklines``
+    Ignore changes whose lines are all blank.
+
+
 ``auth``
 """"""""
 
@@ -364,8 +382,9 @@
 ``diff``
 """"""""
 
-Settings used when displaying diffs. Everything except for ``unified`` is a
-Boolean and defaults to False.
+Settings used when displaying diffs. Everything except for ``unified``
+is a Boolean and defaults to False. See ``annotate`` section for
+related options for the annotate command.
 
 ``git``
     Use git extended diff format.

--- a/mercurial/hgweb/webcommands.py	Sun Nov 20 19:14:36 2011 +0100
+++ b/mercurial/hgweb/webcommands.py	Fri Nov 18 12:04:31 2011 +0100
@@ -12,7 +12,7 @@
 from mercurial.util import binary
 from common import paritygen, staticfile, get_contact, ErrorResponse
 from common import HTTP_OK, HTTP_FORBIDDEN, HTTP_NOT_FOUND
-from mercurial import graphmod
+from mercurial import graphmod, patch
 from mercurial import help as helpmod
 from mercurial.i18n import _
 
@@ -576,6 +576,7 @@
     fctx = webutil.filectx(web.repo, req)
     f = fctx.path()
     parity = paritygen(web.stripecount)
+    diffopts = patch.diffopts(web.repo.ui, untrusted=True, section='annotate')
 
     def annotate(**map):
         last = None
@@ -585,7 +586,8 @@
             lines = enumerate([((fctx.filectx(fctx.filerev()), 1),
                                 '(binary:%s)' % mt)])
         else:
-            lines = enumerate(fctx.annotate(follow=True, linenumber=True))
+            lines = enumerate(fctx.annotate(follow=True, linenumber=True,
+                                            diffopts=diffopts))
         for lineno, ((f, targetline), l) in lines:
             fnode = f.filenode()
 

--- a/mercurial/mdiff.py	Sun Nov 20 19:14:36 2011 +0100
+++ b/mercurial/mdiff.py	Fri Nov 18 12:04:31 2011 +0100
@@ -75,11 +75,38 @@
         text = re.sub('\n+', '\n', text).strip('\n')
     return text
 
-def allblocks(text1, text2, opts=None, lines1=None, lines2=None):
+def splitblock(base1, lines1, base2, lines2, opts):
+    # The input lines matches except for interwoven blank lines. We
+    # transform it into a sequence of matching blocks and blank blocks.
+    lines1 = [(wsclean(opts, l) and 1 or 0) for l in lines1]
+    lines2 = [(wsclean(opts, l) and 1 or 0) for l in lines2]
+    s1, e1 = 0, len(lines1)
+    s2, e2 = 0, len(lines2)
+    while s1 < e1 or s2 < e2:
+        i1, i2, btype = s1, s2, '='
+        if (i1 >= e1 or lines1[i1] == 0
+            or i2 >= e2 or lines2[i2] == 0):
+            # Consume the block of blank lines
+            btype = '~'
+            while i1 < e1 and lines1[i1] == 0:
+                i1 += 1
+            while i2 < e2 and lines2[i2] == 0:
+                i2 += 1
+        else:
+            # Consume the matching lines
+            while i1 < e1 and lines1[i1] == 1 and lines2[i2] == 1:
+                i1 += 1
+                i2 += 1
+        yield [base1 + s1, base1 + i1, base2 + s2, base2 + i2], btype
+        s1 = i1
+        s2 = i2
+
+def allblocks(text1, text2, opts=None, lines1=None, lines2=None, refine=False):
     """Return (block, type) tuples, where block is an mdiff.blocks
     line entry. type is '=' for blocks matching exactly one another
     (bdiff blocks), '!' for non-matching blocks and '~' for blocks
-    matching only after having filtered blank lines.
+    matching only after having filtered blank lines. If refine is True,
+    then '~' blocks are refined and are only made of blank lines.
     line1 and line2 are text1 and text2 split with splitnewlines() if
     they are already available.
     """

--- a/mercurial/patch.py	Sun Nov 20 19:14:36 2011 +0100
+++ b/mercurial/patch.py	Fri Nov 18 12:04:31 2011 +0100
@@ -1527,10 +1527,10 @@
 class GitDiffRequired(Exception):
     pass
 
-def diffopts(ui, opts=None, untrusted=False):
+def diffopts(ui, opts=None, untrusted=False, section='diff'):
     def get(key, name=None, getter=ui.configbool):
         return ((opts and opts.get(key)) or
-                getter('diff', name or key, None, untrusted=untrusted))
+                getter(section, name or key, None, untrusted=untrusted))
     return mdiff.diffopts(
         text=opts and opts.get('text'),
         git=get('git'),

--- a/tests/test-annotate.t	Sun Nov 20 19:14:36 2011 +0100
+++ b/tests/test-annotate.t	Fri Nov 18 12:04:31 2011 +0100
@@ -2,7 +2,8 @@
 
 init
 
-  $ hg init
+  $ hg init repo
+  $ cd repo
 
 commit
 
@@ -253,3 +254,56 @@
   $ hg ann nosuchfile
   abort: nosuchfile: no such file in rev e9e6b4fa872f
   [255]
+
+Test annotate with whitespace options
+
+  $ cd ..
+  $ hg init repo-ws
+  $ cd repo-ws
+  $ cat > a <<EOF
+  > aa
+  > 
+  > b b
+  > EOF
+  $ hg ci -Am "adda"
+  adding a
+  $ cat > a <<EOF
+  > a  a
+  > 
+  >  
+  > b  b
+  > EOF
+  $ hg ci -m "changea"
+
+Annotate with no option
+
+  $ hg annotate a
+  1: a  a
+  0: 
+  1:  
+  1: b  b
+
+Annotate with --ignore-space-change
+
+  $ hg annotate --ignore-space-change a
+  1: a  a
+  1: 
+  0:  
+  0: b  b
+
+Annotate with --ignore-all-space
+
+  $ hg annotate --ignore-all-space a
+  0: a  a
+  0: 
+  1:  
+  0: b  b
+
+Annotate with --ignore-blank-lines (similar to no options case)
+
+  $ hg annotate --ignore-blank-lines a
+  1: a  a
+  0: 
+  1:  
+  1: b  b
+

--- a/tests/test-debugcomplete.t	Sun Nov 20 19:14:36 2011 +0100
+++ b/tests/test-debugcomplete.t	Fri Nov 18 12:04:31 2011 +0100
@@ -189,7 +189,7 @@
 Show all commands + options
   $ hg debugcommands
   add: include, exclude, subrepos, dry-run
-  annotate: rev, follow, no-follow, text, user, file, date, number, changeset, line-number, include, exclude
+  annotate: rev, follow, no-follow, text, user, file, date, number, changeset, line-number, ignore-all-space, ignore-space-change, ignore-blank-lines, include, exclude
   clone: noupdate, updaterev, rev, branch, pull, uncompressed, ssh, remotecmd, insecure
   commit: addremove, close-branch, include, exclude, message, logfile, date, user, subrepos
   diff: rev, change, text, git, nodates, show-function, reverse, ignore-all-space, ignore-space-change, ignore-blank-lines, unified, stat, include, exclude, subrepos