Watch the Caravan online guitar lesson by Mimi Fox from Jazz Performance
There are many cool and creative uses of the diminished scale and lines off of the diminished scale. In my Mel Bay book: "Graduated Soloing, The Mimi FoxGuitar Method" I wrote out numerous diminished patterns that are highly colorful. The trick with the diminished scale (and any other symmetrical scales such as the Whole Tone scale) is that you have to be creative in how you use them or else they will sound robotic and stiff. I like to take diminished lines and eventually resolve them to a bluesy phrase or something more "inside" so the listener, and my fellow musicians get a musical release.