This is due to Contextify not being installed correctly. It is listed as an optionalDependency in package.json, but it’s really not—if it can’t install, you get this error with pretty much everything.
When you do the npm install, do you get any errors about the installation of contextify? Does this happen on a stable Node version (i.e. the 0.8 series)?
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I agree that it should be non-optional. Eli, any disagreement? Maybe push out a 0.5 in the next week with that change.