You have a problem with your current directory.

On 08/26/2011 02:02 PM, Ian Lawrence wrote:

Here is the file:

context /Users/Ian/SPT_PDF_context/ConTEXt_production_ws/trial/ref.tex

And here is the graphic

graphics>  inclusion>  found: 
/Users/Ian/SPT_PDF_context/ConTEXt_production_ws/trial/graphics/pic.pdf

But here are you:

Ian-MBP:ConTEXt_production_ws Ian$

Which is probably
  /Users/Ian/SPT_PDF_context/ConTEXt_production_ws
right?

Then that means that the graphics path of

graphics        > inclusion > path list: . .. ../.. graphics ../graphics

expands into:

   /Users/Ian/SPT_PDF_context/ConTEXt_production_ws
   /Users/Ian/SPT_PDF_context
   /Users/Ian
   /Users/Ian/SPT_PDF_context/ConTEXt_production_ws/graphics
   /Users/Ian/SPT_PDF_context/graphics

none of these contain the file!

You would have needed

  \setupexternalfigures[directory={graphics,trial/graphics}]

Best wishes,
Taco

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