Palindromic sequences (inverted repeats) flanking the origin of DNA replication with the potential of forming single-stranded stem-loop cruciform structures have been reported to be essential for replication of the circular genomes of many prokaryotic and eukaryotic systems. In this study, mutant genomes of porcine circovirus with deletions in the origin-flanking palindrome and incapable of forming any cruciform structures invariably yielded progeny viruses containing longer and more stable palindromes. These results suggest that origin-flanking palindromes are essential for termination but not for initiation of DNA replication. Detection of template strand switching in the middle of an inverted repeat strand among the progeny viruses demonstrated that both the minus genome and a corresponding palindromic strand served as templates simultaneously during DNA biosynthesis and supports the recently proposed rolling-circle "melting-pot" replication model. The genome configuration presented by this model, a four-stranded tertiary structure, provides insights into the mechanisms of DNA replication, inverted repeat correction (or conversion), and illegitimate recombination of any circular DNA molecule with an origin-flanking palindrome.The rolling-circle replication mechanism has been demonstrated in the replication of circular DNAs of phages (32), bacterial plasmids (7, 15), plant geminiviruses (11, 13, 34), and animal DNA viruses (10,28,29). The rolling-circle cruciform replication model postulates that a replicator initiation protein (Rep) binds its cognate sequence at the origin of DNA replication, unwinds the double-stranded DNA, and causes extrusion of two single-stranded stem-loops to generate a cruciform structure. Rep then nicks the cognate sequence present in the plus strand to generate a free 3Ј-OH end for new leadingstrand DNA synthesis. During geminivirus replication (11,13,34), the closed circular single-stranded genome is first converted to a superhelical double-stranded DNA replication intermediate. The virus-encoded Rep binds to and nicks (indicated by 2) between the seventh T and the eighth A of a "conserved" nonanucleotide (TAATATT2AC) at the origin to initiate plus-strand DNA replication. This nonanucleotide is present among all members of the Geminiviridae family and is flanked by two inverted repeat (palindromic) sequences, which can potentially base pair together to form the stems of a cruciform structure during DNA replication.Similar to geminiviruses, porcine circovirus (PCV) of the Circoviridae family has a closed circular single-stranded DNA genome (21,35,40). Two genotypes of PCV have been identified. PCV type 1 (PCV1) is nonpathogenic, while PCV2 has been implicated as the etiological agent of a new disease, named postweaning multisystemic wasting syndrome (1). The genome nucleotide sequences of a number of PCV1 (1,759 bases) and PCV2 (1,768 bases) isolates (2,8,12,22,23,27) have been determined. It has been suggested that the PCV genome is an intermediate between the genomes of geminivirus...