From the Perl debugger session I just ran:

[alex@rand alex]$ perl -de 1

Loading DB routines from perl5db.pl version 1.19
Editor support available.

Enter h or `h h' for help, or `man perldebug' for more help.

main::(-e:1):   1
  DB<1> @file1=qw/dave bob rich jim/;

  DB<2> @file2=qw/dave rich/;

  DB<3> foreach(@file1){$list{$_}=1;}

  DB<4> foreach(@file2){delete $list{$_};}

  DB<5> print "Remaining elements " . join("; ",keys %list) . "\n";
Remaining elements jim; bob

  DB<6>
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PS: When posting code, put it in between 'code' tags. That way it doesn't wrap like normal text.

Thanks for yout inputs. The below code is how I got the output I wanted.

#!perl
open FILE1, "<file1"; @linesFile1 = <FILE1>; close FILE1;
open FILE2, "<file2"; @linesFile2 = <FILE2>; close FILE2;
open(MYOUTFILE, ">file3");
open(MYOUTFILE, ">>file3");
foreach $line(@linesFile1)
{
    if(! grep{$_ eq $line} @linesFile2 ){ print MYOUTFILE "$line"; }
}
print "\n";
close(MYOUTFILE);
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Thanks again.. RCP