Wolfgang, With the same context headers in the document as are in the 'real' document, yes, same error. I've modified the image to different images in the same directory and a different image in another directory and still get the same error. I checked and the only changes made to my system this week were some ruby packages I installed yesterday, so there should have been no changes to the context environment itself. The only other thing I can think of is something awry with Dropbox, which is where all of these files reside. Except I can edit/view images and documents. It's just context that seems to have an issue. Thank you.
Do you get the same error message when you put this short example in the same directory as document?
\starttext \externalfigure[images/group54/26378/CMSLogin.jpg] \stoptext
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