Thanks, Aditya,

>
> You said that there was no problem in compiling your test file with  
> MKII. So, MKII is finding t-ancientgreek. But kpsewhich does not  
> find it.
>
> When you compile the file in MKII, which t-ancientgreek is being  
> used (the whole path should be in the log file.

/Users/alancbowen/texmf/tex/context/third/greek/t-ancientgreek.tex
(/Users/alancbowen/texmf/tex/context/third/greek/t-ancientgreek.mkii

> The easiest way to get everything working right now will be add you  
> local texmf tree at /Applications/ConTeXtMinimals/tex/texmf-project.

Is that all or are there some housekeeping commands that I should run  
too?

  So far, have included a sym link to my local texmf directory in / 
Applications/ConTeXtMinimals/tex/texmf-project. But I still get
system         : module ancientgreek not found

Alan