I'm observing some strange behaviour with the YAML folding markers: the folding stop marker does not appear when there is some whitespace on the closing line this despite of the regex matching \s*. It works fine if the line is completely empty, however.
I also thought it helpful to add [^#] after the initial ^ in the folding start marker regexp so that comments containing words followed by colons do not appear as folding markers (as with the default database.yml that Rails 1.1.2 generates).
foldingStartMarker = '^[^#]\s*.*:(\s*[?| &.+)?$';
-- Paul