<edit>not disputing babrown, replying to Girish.</edit>
You're not understanding how differential backups work, they don't work like transaction log backups. Differential backups is a backup of all transactions since the last full backup. If you did a full back two days ago, and you did a diff backup yesterday, you'd get everything from two days ago until yesterday. You do another diff backup today, you get everything from two days ago until today. So the second differential includes the transactions that are in the first differential backup. You don't use all differential backups to restore a database, only the most recent one. The way to restore a database is 1-the most recent full backup, 2-the most recent differential backup since that full backup, and 3-all transaction log backups since the most recent differential backup.
The easiest way to recreate a database, especially if it's just for development purposes, is to just delete the old one, and restore a full backup into a new one.