OK: That does not sound good, so back to basics then. Here is a test file. Perhaps the problem lies in how I am defining my keys.

% with MKII the output is fine, but no contrastcolor
% with MKIV subentry/subsubentry are not placed properly

\setupinteraction[state=start,color=blue,contrastcolor=red]
\setupcolors[state=start]

\setupregister[index][n=3,
balance=yes,
pagestyle=italic,
textstyle=normal,
criterium=all,
interaction={pagenumber},
]

\setupregister[index][indicator=no,distance=0.5em]

\setupregister[index][pagecommand=\it] %needed with MKIV

\starttext

Throughout the millennia \index{humans}humans have \index[humans]{humans+development}developed and \index[humans+development]{humans+development+adaptation}adapted methods for storing facts and
thoughts on a variety of different media.
\page
Throughout the millennia \index{humans}humans have \index[humans]{humans+development}developed and \index[humans+development]{humans+development+adaptation}adapted methods for storing facts and
thoughts on a variety of different media.

\blank[3*big]

\placeindex

\stoptext
 

On Sun, Mar 18, 2012 at 5:17 PM, Wolfgang Schuster <schuster.wolfgang@googlemail.com> wrote:

Am 18.03.2012 um 22:11 schrieb Alan Bowen:

> Sorry for the bother, Wolfgang. I think I have the answer now (see my message earlier by about 30 seconds). I had not realized that the textstyle key in \setupregister could take a command for positioning the head as well as its actual style.

You textstyle key accepts commands because it has to accepts \ss, \bf etc. and you misuse this for something different.

Wolfgang

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