This should explain everything... Like Martin said, you just need to change your project dependencies, because VS is thankfully smart enough to figure out the build order based on them. That's why you can't have circular references in your project dependencies... VS complains because it knows it won't be able to satisfy the requirements of both projects.
UPDATE
The Project Dependencies definitely determine the build order. Can you post a zip of your solution and projects? I need to see this for myself. :) But for kicks, I made a project like what you have outlined:
Here are my project dependencies:
Project 1 - main app
Project 2 - depends on Project 4
Project 3 - depends on Project 2
Project 4 - no dependencies
My batch build screen:
And my output window -- note the build order. Although my Project 1 is really named StackOverflow_BatchBuild, Project 2 was not built first -- Project 4 was.
------ Build started: Project: Project4, Configuration: Debug Any CPU ------
C:\Windows\Microsoft.NET\Framework\v3.5\Csc.exe /noconfig /nowarn:1701,1702 /errorreport:prompt /warn:4 /define:DEBUG;TRACE /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Core.dll" /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Data.DataSetExtensions.dll" /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Data.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Xml.dll /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Xml.Linq.dll" /debug+ /debug:full /filealign:512 /optimize- /out:obj\Debug\Project4.dll /target:library Class1.cs Properties\AssemblyInfo.cs
Compile complete -- 0 errors, 0 warnings
Project4 -> C:\Code\trunk\vs2008\Scratch\StackOverflow_BatchBuild\Project4\bin\Debug\Project4.dll
------ Build started: Project: Project2, Configuration: Debug Any CPU ------
C:\Windows\Microsoft.NET\Framework\v3.5\Csc.exe /noconfig /nowarn:1701,1702 /errorreport:prompt /warn:4 /define:DEBUG;TRACE /reference:C:\Code\trunk\vs2008\Scratch\StackOverflow_BatchBuild\Project4\bin\Debug\Project4.dll /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Core.dll" /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Data.DataSetExtensions.dll" /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Data.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Xml.dll /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Xml.Linq.dll" /debug+ /debug:full /filealign:512 /optimize- /out:obj\Debug\Project2.dll /target:library Class1.cs Properties\AssemblyInfo.cs
Compile complete -- 0 errors, 0 warnings
Project2 -> C:\Code\trunk\vs2008\Scratch\StackOverflow_BatchBuild\Project2\bin\Debug\Project2.dll
------ Build started: Project: Project3, Configuration: Debug Any CPU ------
C:\Windows\Microsoft.NET\Framework\v3.5\Csc.exe /noconfig /nowarn:1701,1702 /errorreport:prompt /warn:4 /define:DEBUG;TRACE /reference:C:\Code\trunk\vs2008\Scratch\StackOverflow_BatchBuild\Project2\bin\Debug\Project2.dll /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Core.dll" /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Data.DataSetExtensions.dll" /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Data.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Xml.dll /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Xml.Linq.dll" /debug+ /debug:full /filealign:512 /optimize- /out:obj\Debug\Project3.dll /target:library Class1.cs Properties\AssemblyInfo.cs
Compile complete -- 0 errors, 0 warnings
Project3 -> C:\Code\trunk\vs2008\Scratch\StackOverflow_BatchBuild\Project3\bin\Debug\Project3.dll
------ Build started: Project: StackOverflow_BatchBuild, Configuration: Debug Any CPU ------
C:\Windows\Microsoft.NET\Framework\v3.5\Csc.exe /noconfig /nowarn:1701,1702 /errorreport:prompt /warn:4 /define:DEBUG;TRACE /reference:C:\Code\trunk\vs2008\Scratch\StackOverflow_BatchBuild\Project3\bin\Debug\Project3.dll /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Core.dll" /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Data.DataSetExtensions.dll" /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Data.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Deployment.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Drawing.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Windows.Forms.dll /reference:C:\Windows\Microsoft.NET\Framework\v2.0.50727\System.Xml.dll /reference:"C:\Program Files (x86)\Reference Assemblies\Microsoft\Framework\v3.5\System.Xml.Linq.dll" /debug+ /debug:full /filealign:512 /optimize- /out:obj\Debug\StackOverflow_BatchBuild.exe /resource:obj\Debug\StackOverflow_BatchBuild.Properties.Resources.resources /target:winexe Form1.cs Form1.Designer.cs Program.cs Properties\AssemblyInfo.cs Properties\Resources.Designer.cs Properties\Settings.Designer.cs
Compile complete -- 0 errors, 0 warnings
StackOverflow_BatchBuild -> C:\Code\trunk\vs2008\Scratch\StackOverflow_BatchBuild\bin\Debug\StackOverflow_BatchBuild.exe
========== Build: 4 succeeded or up-to-date, 0 failed, 0 skipped ==========