Wolfgang, thank you very much for your answer about placing text.

Using:

\startplacefigure[location=force,title={First dummy caption}]
\inmargin{First margin dummy}
\externalfigure[dummy][width=\textwidth]
\stopplacefigure

The text in the \inmargin section appears at the bottom of the figure. This
works for about one line of text. For some of the figures I'm trying to put
3-4 lines in a wide margin and would like the text to appear at the top or
the middle of the figure.

I asked a question over at Stackexchange on this:

http://tex.stackexchange.com/questions/107856/placing-text-in-the-margin-next-to-a-figure-using-context

Using \starthanging \stophanging put the text in the correct place but then
the figures ran into each other.

regards
Pete
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