Hi,

Yes Hraban it works outside in normal text flow. When I do e.g. 
*{\InitialCapFont test in normal text flow}* the text '/test in normal 
text flow/' is rendered correctly in the Antykwa-Poltawskiego font.

Found out that the following does work with the *\placeinitial* command:

*\setupinitial[color=MyColor,distance=6pt,n=3,font=name:antpoltcondregular*default 
sa 4]*

So something weird is happening I suppose!

Regards,
Geert Verhaag