Watching the coverage UI during a test run strongly suggests they are not sequential as can be seen in the linked screencast.
http://screencast.com/t/W1idHEXTCKNote the three suites towards the bottom of the coverage UI. The first suite shows activity, then seconds later, the other two appear to be running. There is a long pause then towards the end (after 20 seconds or so), all three suites indicate activity and the test run completes.
Furthermore, and this would be a much larger issue, our setup scripts at the TestSuite level are not running when running all TestSuites from the Project level.
We were able to prove this as our groovy script writes out property values during it's execution and none of the properties were being updated. We then cleared out all of the properties, ran the project and the properties were blank at the end of the test run.
We're hoping this can be corrected in a nightly build.
