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HI Lyn,
contexts basically are tags that you assign to your books and documents. The purpose is to have a quick access to the items that belong to a certain context.
You get started by enabling contexts in NB's settings. Then you can assign the contexts to your documents through their "Info" page. At the top level of NB you will find a new "Smart Book" listing all contexts you have set up, and each context then lists the items that are assigned to that context. This gives you a quick way of finding what belongs "@Home", "@Office" etc. - This basically follows the "getting things done" method as described by David Allen
I hope that helps.
Best,
Alfons