**C, <strike>230</strike> <strike>200</strike> 193 characters**

**EDIT: Shortened it from 230 to 193 characters.**

My first golf attempt. Maybe not a hole-in-one, but it works. Not being allowed to use strlen for this forces it to be fairly verbose in C. Maybe it can be shortened a bit?

    a,b,w,i,l;
    int main(int c,char **v){
    	for(;a<256||b<256;i++){
    		if(!v[1][i])a|=256;
    		if(!v[2][i])b|=256;
    		if(!(a&256))a++;
    		if(!(b&256))b++;
    	}
    	a&=255;b&=255;
    	w=a>b?0:1;
    	l=w?b-a:a-b;
    	printf("%s %i\n",v[w+1],l);
    }

Or the uglier version:

    a,b,w,i,l;int main(int c,char **v){for(;a<256||b<256;i++){if(!v[1][i])a|=256;if(!v[2][i])b|=256;if(!(a&256))a++;if(!(b&256))b++;}a&=255;b&=255;w=a>b?0:1;l=w?b-a:a-b;printf("%s %i\n",v[w+1],l);}

Example output:

    N:\>golf.exe everything works
    everything 5