This is how Kiln[1] got started at Fog Creek. We wanted a good way to do code reviews
after checking it in to a branch. (Checking in before you review makes it possible to review the changes in steps, instead of looking at one huge diff.) Django Dash was coming up, so we entered and made that our 48-hour project. By the end of the weekend we had a basic prototype that took two Mercurial repos (branch-by-clone) and calculated the diffs from that.
Fast forward a couple of months, Joel was talking about adding SVN to FogBugz. We were sick of SVN and had this prototype, so we polished it up, presented it, and got approval to start working on it for real.
[1] http://www.fogcreek.com/kiln/