The Folder branch under Configuration - Compare has the following options for Folder Compares:
Compare Method
Three compare options are available for Folder Mode:
Basic
If this option is selected a Folder Compare will only check the size and date of items included in compared folders.
Full
If this option is selected a Folder Compare will perform a byte-by-byte comparison of all files in compared folders.
Smart
If this option is selected a Folder Compare will include a text compare of all files included in compared folders and will also obey ignore options configured for text compares.
Recursive Compare
If this option is selected compares will include all subdirectories of folders specified for compare rather than just the top level directory.
Force load files in Text Mode
If this option is selected all files will be loaded as text files regardless of their content.
Remember compare mode for file extensions
If this option is selected the last mode used for a given extension determines the mode that will be used the next time a file with the same extension is opened for compare.
Force load undetected files in specified mode
When selected, two radio button options are available: Text Mode and Binary Mode. If this option is selected and UltraCompare cannot determine whether a file is a text file or a binary file when initially loading files for compare, UltraCompare will default to the option specified.