A recent article (
http://www.biomedcen...ews/20041011/01) describes how transposons can regulate development and it is known that they can exist in junk DNA.
I wonder if one potential use of 'junk DNA' is a storage place for transposon sequences which are used as elements of regulation when they get placed into promoters?
I'm not sure if DNA folding is important to gene expression or regulation as there doesn't seem to be sequence specific variation in nucleosome binding or chromatin structure (as far as I know yet.. ) What I have been reading is that the availability of binding sites for transcription factors (and presumbably other genetic agents like RNA based enzymes), as determined by the position of the sequence as wrapped around the nucleosome core, can have some bearing on the level of transcription. Binding sequences located closer the beginning of the wrapping tend to be more available as they are not as closely associated or tightly bound and are thus more accessible.
I'm sure higher order structure plays a significant role by way of nucleosome-nucleosome interaction, possibly through the modification of epigenetic information but whether or not there are subtle variations in the actual folding of DNA which contribute to gene expression I think is undetermined at this point.