Patrick,
>Is this what you want?
>
>
>\starttext
>\startbuffer
>>> x=linspace(-2,4);
>>> y=x.^2-2*x-3;
>>> plot(x,y)
>>> xlabel('x')
>>> ylabel('y')
>>> title('y = x^2 -2x -3')
>>> grid on
>\stopbuffer
>
>\placesidebyside{%
>\framed[align={lohi,right},frame=off]%
> {\typebuffer}}
>{\externalfigure
> [cow]
> [width=.5\textwidth]}
>\stoptext
Patrick, this would be what I want, but in my preamble I have:
\setuptyping
[before={\startframedtext[width=\makeupwidth,
background=screen,
backgroundscreen=0.8]},
after={\stopframedtext},
color=darkred]
Which seems to be getting in the way of your idea functioning properly.
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