I have Emacs version 23 on Windows and it seem the ediff executable is missing?
From where can I download ediff for Emacs on Windows?
It's probably a Windows-native diff that you're missing. You really want to have access to a suite of additional Unix-like tools when you run NTEmacs.
Cygwin is probably the most common solution. Many people use the GNUWin32 tools instead ("much faster, though less complete, than the Cygwin ones").
See here for more details: How to best integrate Emacs and Cygwin?
Emacs Wiki: http://www.emacswiki.org/emacs/CygWin
Be aware that as well as NTEmacs, there is a Cygwin-native Emacs as well. So you can either use NTEmacs with Cygwin providing all the additional tools; or you can ignore NTEmacs entirely, and install Cygwin's Emacs package and just use that. NTEmacs is faster, but Cygwin Emacs integrates better with the rest of Cygwin in a few areas.