Context in Panels?

Wanted to say thank you to Michael, Dan and iMed for the meeting, pizza, info, book... and to everybody who attended the meeting last night for the discussion.

Also thought I should clarify the last question I posed before heading home last evening. We had been talking a bit about Views so I had that on my mind (good topic for next meeting by the way) and I think I asked about the behavior of "context in Views".

What I meant to ask was if anyone understands "context" as it applies to Panels?

Someone remarked that Panels in D6 may not be ready for production yet...and I have read that also. I haven't run into any major "problems" with it yet but I wonder if the apparent lack of "context" functionality is because it is indeed not yet ready for prime time? To be specific, I have created a number of view with taxonomy terms as arguments and each argument appears to trigger a "context" entry in the corresponding Panel pane config form. The attached image demonstrates what I'm talking about.

What's curious is that each context drop-down on the form says "Multiple contexts are valid for this pane; one must be chosen." but none of the three context pull-downs on the form have anything to select.

So I'm left wondering exactly what Panels' context is, how it's configured, and if it is or is not working properly?

Perhaps a secondary topic for the next meeting... Panels?

Thanks all.