The following does not work as expected. All the items are on the same
line and they overlap each other.

Can someone please let me know if Layers can be combined with
\startitemize...\stopitemize and if so, how to do it.

Thanks,
Bharat

\setupcolors[state=start]
\setupcolor[xwi]

\setupbackgrounds[page][background=color, backgroundcolor=linen]
\starttext

\definelayer [windows] [x=3in, y=3in, width=3in, height=4in]
\definelayer [apple] [x=0.5in, y=0.5in, width=2in, height=2in]

\setlayer [windows] [hoffset=1cm, voffset=1cm]
{Windows 7
        \startitemize[n]
          \item
            Starter
          \item
            Home Premium
          \item
            Professional
          \item
            Ultimate
        \stopitemize }

\setlayer [apple][background=color, backgroundcolor=gray]{Apple}

\setupbackgrounds[page][background=windows]

\page[empty]

\stoptext
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