My .vimrc for gvim on windows.

.vimrc

set number
colorscheme desert

set tabstop=4
set softtabstop=4
set shiftwidth=4

set listchars=tab:>\ ,eol:¬

set nohls
set incsearch
set showcmd
set nowrap
set autoindent
set smartindent

syntax on
filetype on
filetype indent on
filetype plugin on

set nocompatible
source $VIMRUNTIME/vimrc_example.vim
source $VIMRUNTIME/mswin.vim
behave mswin
set nobackup

"folding settings
set foldmethod=indent   "fold based on indent
set foldnestmax=10      "deepest fold is 10 levels
set nofoldenable        "dont fold by default
set foldlevel=1         "this is just what i use


set diffexpr=MyDiff()
function MyDiff()
  let opt = '-a --binary '
  if &diffopt =~ 'icase' | let opt = opt . '-i ' | endif
  if &diffopt =~ 'iwhite' | let opt = opt . '-b ' | endif
  let arg1 = v:fname_in
  if arg1 =~ ' ' | let arg1 = '"' . arg1 . '"' | endif
  let arg2 = v:fname_new
  if arg2 =~ ' ' | let arg2 = '"' . arg2 . '"' | endif
  let arg3 = v:fname_out
  if arg3 =~ ' ' | let arg3 = '"' . arg3 . '"' | endif
  let eq = ''
  if $VIMRUNTIME =~ ' '
    if &sh =~ '\<cmd'
      let cmd = '""' . $VIMRUNTIME . '\diff"'
      let eq = '"'
    else
      let cmd = substitute($VIMRUNTIME, ' ', '" ', '') . '\diff"'
    endif
  else
    let cmd = $VIMRUNTIME . '\diff'
  endif
  silent execute '!' . cmd . ' ' . opt . arg1 . ' ' . arg2 . ' > ' . arg3 . eq
endfunction