I got to the bottom of this with the aid of paper (lots) and a pencil.

My misunderstanding was this.

The home folder for context is not the folder from which the tex file is 
invoked. Context has one fixed home folder. You can set this by a bash profile 
and then completely forget that you have.

I hope this is correct and save someone else some time.

Ian
On 23 Aug 2011, at 15:55, Wolfgang Schuster wrote:

> 
> Am 23.08.2011 um 15:37 schrieb Ian Lawrence:
> 
>> Is anyone else successfully running context on OS X Lion?
>> 
>> Apparently the relative references work in the terminal - that's the command 
>> line interface to unix. I can move around different folders using relative 
>> reference there. However there is a complete failure to repeat relative 
>> references within Context (absolute references work fine). Even with well 
>> structured tex files from Wolfgang or Willi…
> 
> I have also Lion on my machine and can’t reproduce the behavior you 
> mentioned. I tried it with the small example i sent a while back but 
> everywhere i get the correct output.
> 
> Wolfgang
> 
> ___________________________________________________________________________________
> If your question is of interest to others as well, please add an entry to the 
> Wiki!
> 
> maillist : ntg-context@ntg.nl / http://www.ntg.nl/mailman/listinfo/ntg-context
> webpage  : http://www.pragma-ade.nl / http://tex.aanhet.net
> archive  : http://foundry.supelec.fr/projects/contextrev/
> wiki     : http://contextgarden.net
> ___________________________________________________________________________________

___________________________________________________________________________________
If your question is of interest to others as well, please add an entry to the 
Wiki!

maillist : ntg-context@ntg.nl / http://www.ntg.nl/mailman/listinfo/ntg-context
webpage  : http://www.pragma-ade.nl / http://tex.aanhet.net
archive  : http://foundry.supelec.fr/projects/contextrev/
wiki     : http://contextgarden.net
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