Ok, just going to add my thoughts to this one. I've personally presented more of these flags than I prefer to. I am the POIC for the Honor Guard at my detatchment and we do all of the military honors for the Navy in southern New Mexico. First, if there is one star and three stars consider yourself lucky. No matter how many times you practice folding those flags they RARELY come out perfect. I think in the over 50 that I've done there have been 4 or 5 that the fold came out absolutely perfect. After all, not even 8 people folding President Reagans flag got it right. But onto the topic of the thread. I would definately not unfold it. I tend to think that it is retired like sabre. I don't believe there are any rules or at least have never come accross them regarding the flag that is presented by the military.