I found I could achieve the desired layout by directly setting the width 
variable.
Thank you.  I first tried seting the markupwidth but it can't be set, but the 
width layout variable does work.

Thanks

Re: 
\setuplayout[leftedge=0mm, leftedgedistance=0mm, leftmargin=0mm, 
leftmargindistance=0mm,
             backspace=3mm,
             
rightedge=0mm,rightedgedistance=0mm,rightmargin=0mm,rightmargindistance=0mm,
             topspace=3mm, top=0mm, topdistance=0mm, header=0mm, 
headerdistance=0mm,
             footerdistance=0mm, footer=0mm,bottomdistance=0mm, bottom=0mm,
             width=85mm ]

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