pellmell - (((((hugs)))) Feck, thats the first time I've done that and I vowed I never would!
As we both know it's completely normal for a child to want to explore their body. It's when the parents and adults around them address it as a problem that it becomes a bad thing to do in their eyes.
My DS is 5 and constantly getting his willy out, fiddling and wanggling it around at every opportunity.
Sometimes he gets told to put it away as it's totally inappropriate (at the posh kids house!), other times I let him wobble away.
I think its soooooo important for children to explore their bodies and be away of all bits and what they do. As a child I was never encouraged to explore, talk or show my body. I am now a very self concious adult with serious body hang ups. Was taught that sex is bad, bodies shouldn't be over exposed, even ankle jewellery meant you were a prostitute Cheers, Mum!
I don't know how old your DD is, but I would say let her explore away, the body and bits questions will soon come and then you can talk freely about what may be wrong and whats is right.
Now I'm the one not making sense!