> /usr/local/texlive/2007/texmf/web2c/texmf.cnf
> 
> ... but this isn't the right one, right?

  I suppose not (it's not the file you modified, right?).  But then, as
Thomas said, there's probably something special in your ConTeXt file (I
always had save_size = 5000 and never had any problem with it).  For
this purpose, it might be sensible to modify TeXLive / MacTeX's
texmf.cnf (this is generally frowned upon, but, well it is your own
installation).

        Arthur
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