I am relatively new to ConTeXt and hardly a TeX expert by any means, so
I hope that the obvious point I have missed can be easily pointed out.

The attached document trivially reproduces the issue I am having with
layout. What I want to achieve is something like:

* item one      text that continues along here
* item two      and wraps nicely...

Unfortunately, the itemize in the left column places all the items on a
single line, even if I end them each with '\par'

So, if itemize and tabulate do work together, which may not be true,
what have I done wrong?

This is with:
 TeXUtil 7.3 - ConTeXt / PRAGMA ADE 1992-2000
            executable : pdfetex
                format : cont-en
             inputfile : test
                output : pdftex
             interface : en
          current mode : all
               TeX run : 1

This is pdfeTeX, Version 3.14159-1.00a-pretest-20011114-ojmw-2.1 (Web2C 7.3.7)
ConTeXt  ver: 2001.7.11  fmt: 2002.1.19  int: english  mes: english

I run an up-to-date Debian unstable, so a fairly recent TeTeX
distribution.

I hope that these are all the details that are needed. 

        Daniel