I know absolutely nothing about blocking...which is funny because I knit a lot, but have never actually blocked a project. I like to think of it is character, and let it lay the way it does when I take a project off the needles...probably not the proper way. But, it takes me so long to finish projects, I'm usually just trying to get it finished *enough* to wear :-)
Looking good! Sometimes folding over has to do with the combination of different kind of stitches, I think. If possible you can make the edge larger or otherwise I think blocking is the best thing to do. But others may have better knowledge of the issue. Best of luck with your shawl.