Since the graphic is placed correctly when the printing and
typesetting papersizes are the same, I added a \showframe and measured
a few offets.  

The vertical distance between the correct and incorrect position is
the same as the distance between the bottom of the layout frame and
the bottom edge of the paper.  Hence the problem did not appear
without a special papersize.

Consistent with that data, the graphic was placed correctly when the
bookpage was given the height of A4 paper:

  \definepapersize[bookpage][width=6.875in,height=11.7in]

So the problem is that the graphic is placed relative to the the print
paper's origin, rather than to the typesetting paper's origin.  It
could be a bug in the ConTeXt macros or in my MetaPost positioning
code -- which I borrowed from the MetaFun manual without, I admit,
fully understanding it :-)

-Sanjoy

`Not all those who wander are lost.' (J.R.R. Tolkien)
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