organization within the nuclei of higher eukaryotes, the chromosome itself is further organized into multiple domains with distinct properties. This level of organization is visible in interphase nuclei as areas of condensed heterochromatin and regions of more dispersed euchromatin. Chromatin domains are biochemically distinguished by the types of histone modification and associated nonhistone chromosomal proteins. In most higher eukaryotes, domains of constitutive heterochromatin are normally restricted to pericentric and telomeric DNA. A remarkable property of heterochromatin in fungi, flies, and mammals is the ability to spread in cis, in response to loss of boundary constraints or to changes in dosage or activity of chromatin components; this results in silencing of euchromatic genes that are abnormally juxtaposed to heterochromatic domains by chromosome rearrangement or transposition, referred to as Position Effect Variegation (PEV) (for review, see Grewal and Elgin 2002). Recent studies in fungi and plants suggest that heterochromatin formation is targeted to repetitious elements through an RNAi mechanism, resulting in a domain of silenced chromatin (Volpe et al. 2002; Matzke et al. 2004; Schramke and Allshire 2004). The small fourth chromosome of Drosophila melanogaster exhibits a rather unusual chromatin organization compared to the other chromosome arms. The distal 20–25% of chromosome 4 is amplified in polytene nuclei to a similar extent as the other euchromatic arms, and contains 82 genes in 1.2 Mb of DNA (Flybase Consortium 2003), a gene density comparable to that found in other euchromatic regions. At the same time, chromosome 4 exhibits characteristics of heterochromatin throughout its length. Chromosome 4 is rich in dispersed repetitious sequences (Kaminker et al. 2002), shows no detectable meiotic recombination (Bridges 1935), and is late-replicating (Barigozzi et al. 1966), all well-established characteristics of heterochromatic regions. Further, immunofluorescent staining of polytene chromosomes shows that Heterochromatin Protein 1 (HP1), known to play a key role in heterochromatin-induced silencing, is localized both in the pericentric heterochromatin and across the whole of the fourth chromosome (Fig. 1A) (James et al. 1989; Eissenberg and Elgin 2000). Analyzing Heterochromatin Formation Using Chromosome 4 of Drosophila melanogaster
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