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So is XeTeX+ConTeXt (ed note: I hate the odd capitalization) the typesetting system to use, or are there even better combos?

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LuaTeX + ConTeXt (also called MKIV), see the page on http://wiki.contextgarden.net/Mark_IV. With this combo, you can use the typesetting power of TeX and the programming power of LuaTeX combined.

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