Fuzzy string search
ntz-develop.blogspot.com
ntz-develop.blogspot.com
Just thought I'd mention it because if you find it interesting, computational biology is a real growth area right now - the cost of sequencing genomes has been dropping faster than Moore's law, and it's quite possible that within our lifetimes we will be using this sort of technology to genetically engineer people.
I've found that a better way to approach this problem is to use suffix arrays to generate the best overlaps (ranges) from the reference and then perform a "range compression" (not of the audible kind) to coalesce adjacent ranges that differ by very little and insert/delete the offending characters.
I'm using a similar technique for genome compression against a reference and am able to get a 700x compression on 2 Korean genomes and 130x compression on hg18(build 36.1) and another build/assembly(number 36.3) of the human reference genome.
The author mentions at the end that he didn't consider Tries. However, I think they are valuable data structure.
[1] http://blog.hackthology.com/ternary-search-tries-for-fast-fl...
For those that don't make it all the way through the article, the author has implemented all the algorithms in Java and is available at his project page (above).