Peter Rolf wrote:
   you have to manually copy the
  

hacker.jpg to your working directory (under linux e.g. with cp
$(kpsewhich hacker.jpg) /path/to/your/working/directory) and change the
path to make the minimal example work under mark iv.
  
      

I noticed this too (no picture with mkiv). BOF = Bug Or Feature :)
    

\setupexternalfigures[location={local,global,default}]

The default value of \setupexternalfigures is {local,global}
and that does not actually search in the global texmf trees.

Best wishes,
Taco
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