Thanks for the reply Greg; unfortunately I am only able to reference the compiled DLLs. My company chose to create the compiled DLLs for inclusion in other projects so that form developers don't have to see the code.
A couple of pointers for you in case you didn't already know. The DLLs will be added to the bin\debug folder every time a project is built if the Copy Local property setting for a reference is set to true. Also, if you have multiple projects in a solution you can right click and compile just one instead of the entire solution if you don't need to compile the other(s).
I'm still not sure how to make sure that the references always grab the most recently compiled version in lieu of removing/readding them. Even though I've recompiled an assembly that is referenced, the old version is used when I compile my project which references the assembly. I read something today that indicates that if I add the reference by right-clicking References and adding, the reference is created as a file reference. If I go through Project properties and add a reference, it is created as a Project reference. I've been following the former method of adding references, so before the next compile I'm going to try adding them through the Project properties-->References page and see if that makes a difference.
I did some further research which answers my second question. The answer is to use a tool such as MSBuild to create builds. This tool allows one to create scripts to support multiple build types (development, release, testing, etc.). I suppose I could do something similar with batch files. Either way, there isn't a way within the IDE to toggle between debug/release builds of referenced assemblies.
I'll repost here if adding references through Project properties makes a difference.
Thanks!