about compilation in c#

Question

i hav a question hope sombdy will answer

consider a situation in which there are multiple projects in a solution and one project's dll(which v get after compiling it) is refrenced by other projects in that solution.All the build information of a project is present in .csproj file of that proj for compilation of project.In the situation, mentioned above,as there is dependency of all other projects on the dll of another project in the same solution,in this case there is a tag in .csproj file with the name <ProjectReference> that contains path info of refered dll.
But if a project has the reference of the dll that is not in the same solution,then in this case path of that dll is present in the tag <HintPath> instead of <ProjectReference> in .csproj file of that project.so now i have to ask that am i right??i mean that whether i have extracted this information rightly.if not then plz can u tell what in actual happens because this information is requred in one of my applications