Ok, got it working. The SDL directory i keep it in is called "XBMC SDL\project\Win32BuildSetup", and not "SDL\project\Win32BuildSetup", so as soon as i renamed it and tried it again, it worked fine now. Thing is, why can't the batch file (tried finding the one hardcoded to look in SDL directory) use the "..\project\Win32BuildSetup" instead of hardcoding it to "SDL\project\Win32BuildSetup"? That way it automatically looks whatever directory the user is within.
My reasoning is this, i keep all my xbox svn/scripts svn/skins svn located on my D Drive in "d:\XBMC Builds" and keep my xbmc SDL compiles and such under "d:\xbmc SDL" directory." but currently the process wouldn't work as is since it looks under "SDL\" specifically.
I guess for now, until the coder's hopefully agree to use a "..\" system instead of "SDL\" (so the user is allowed by default to use whatever main directory name they choose to), i can just move the needed "SDL\" directory inside my "XBMC Builds\" and make my pc sdl versions, as well as now my SDL BuildSetup .exe files from within my xbmc builds directory. Thanks for the help.
BTW- With the recent 'thanks tvon' change in the SVN, i didn't have to make any changes at all anymore to any batch files. (other then the main directory name being specific) Thanks!!!
Update- Ahhhh, i see what's happening. The batch files doesn't recognize directories with a space in them. Since mine is "d:\xbmc sdl", it's only seeing the name AFTER the space, hense "d:\SDL". Now that makes some sense. I know with the dos formatting, you have to add quotes around a directory name in a batch file if there is a space in the directory name, but since a lot of the formatting in these batch files i don't recognise, i didn't catch that until now.