Hello!
1.
Apparently you are trying to use LaTeX files under ConTeXt. But ConTeXt files
are completely different from LaTeX files!!!!! See
documentations.
2. I
am using ConTeXt under MikTeX, and there are no problems. But the executable
should be pdftex, and not pdflatex.!!! Even in
texexec.ini.
Dan
Seracu