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