Whenever I have a library that use across different websites/ applications I\'ve always just added the library\'s project into the same solution and reference it from there.
We keep our production Dlls in a well-known location on a network drive and reference is via the DFS UNC path (no drive letter). This way we can have different versions of the library in use at the same time and updates don't break code/force a recompilation until the newer version needs to be used. A standard naming scheme can be used to ensure that if a project always wants to use the latest version it can.