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it was a building you could see in the distance when Sun and Lapidus got off the docks

Go ahead and post a screencap of this, because watching "Namaste" I see no evidence of any buildings within sight of the dock.

Sawyer told the 06 he was taking them directly to the Barracks. Then, we see them being shuttled (by another driver) to the processing center..and then back again after getting their work orders for a picnic and pictures. (which further proves the processing center is a distance from the Barracks.)

Well in the universe in which I live, Sawyer didn't directly tell them anything about where he was taking them...he just showed up with clothes and said he'd rigged it so they were recruits off the sub. Then, we see them climbing out of the van by the processing center. Sawyer gets out too...at no point are any of the O6 in a van with another driver; indeed, this is the only time in the episode in which they're in a vehicle at all. The scene where they're actually processed takes place entirely within the center, so it doesn't help. They are never shown being driven anywhere after that...the photo/picnic scene begins immediately with the photo.

The smoking gun is still missing: a shot that shows something we know to be near the processing center (namely, the building itself) in the same shot as something we know to be in the town proper (Ben and Locke pass a water pump and the swing set before the light in Ben's house turns on). However, I don't see any reason to believe the center is anywhere other than the barracks:

a) Jack is asked who his shuttle driver was, meaning the dock is a shuttle ride away from the processing center.

b) the center would need to be within the fence. It wouldn't be a particularly warm welcome for recruits to be set upon by Hostiles. It's possible the dock is within the fence too but if the fence ends at the shore I'm pretty sure the Hostiles know how to swim, and I doubt a sonic fence works underwater. So the dock is probably open, but I have a hard time believing the processing center is.

c) in tonight's episode, as we come back from a flashback, there is a shot of the deserted processing center. It's an establishing shot. The next shot is Ben and Locke walking through what we should all agree is the barracks: the swing set is there, and within two or three shots the light in Ben's window comes on. Do we see the characters walking by the processing center in the same shot? No. But if the center is not in town, why would it be used as an establishing shot for the town? Conversely, when Sun and Frank arrive at the dock, they're stopped briefly by the monster. They comment on it, and it kind of puts a period on the scene. The next shot is them emerging from the bushes at the processing center. One would be free to interpret this as occurring just a few seconds after stepping off the dock, but one could also just as easily interpret it as occurring after a bit of a walk, and that it's a new scene.

They show the Processing Center sign swinging audibly, and then cut to the swing set area, and you can still hear the sign swinging.

Technically that sound could be some other loose object swinging, so I decided not to count it.