AutoDroppedCaps and indenting

[Joshua Ellis <josh@apostate.com>]

This may be a silly question, but it appears the use of \AutoDroppedCaps 
(or \DroppedCaps) causes indenting settings to do away.  For example:

========================
\AutoDroppedCaps
\setupwhitespace[none]
\setupinterlinespace[small]
\setupindenting[medium]
\indenting[yes]


\starttext

Para 1 blah blah blah para 1 blah blah blah para 1 blah blah blah para 1
blah blah blah para 1 blah blah blah para blah blah blah para 1 blah 
blah blah para 1 blah blah blah para 1 blah blah blah

Para 2 blah blah blah para 2 blah blah blah para 2 blah blah blah para 2
blah blah blah para 2 blah blah blah para 2 blah blah blah para 2 blah 
blah blah para 2 blah blah blah para 2 blah blah blah para 2 blah blah blah

Para 3 blah blah blah para 3 blah blah blah para 3 blah blah blah para 3
blah blah blah para 3 blah blah blah para 3 blah blah blah para 3 blah 
blah blah para 3 blah blah blah para 3 blah blah blah

\stoptext
=========================

Without \AutoDroppedCaps each paragraph is indented as expected.  With 
\AutoDroppedCaps, none of the paragraphs are indented.  If 
\AutoDroppedCaps is enabled, if I place \indenting[yes] immediately 
after the first word of the first paragraph (so it looks like "Para 
\indenting[yes] 1"), then the 3rd paragraph is indented, but the second 
one is still flush-left.

Any ideas?

Thanks,
-joshua