> for 'D', the dependency on B is resolved by including the B\target\B.jar
> jar file. However, when I run the package from within D, the dependency
> on B is resolved from the local repository.

This is simply how Maven works when it comes to building multi-module
projects. When building from A, it "knows" about B, but not when you
build from D.

You may want to look at the reactor plugin and see if you can make
this work like you prefer:
http://maven.apache.org/plugins/maven-reactor-plugin/
http://www.sonatype.com/people/2009/10/maven-tips-and-tricks-advanced-reactor-options/
http://brettporter.wordpress.com/2008/09/19/reactor-my-new-favourite-maven-plugin/

Wayne

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