can anyone enlighten me if volume 2 on amazon follows directly after volume 1?

Yes it does, there is also vol 3 and 4 but vol 4 is the new batman adventures

I wish volume 3 was out in region 2 dvd

I have them all, they are epic and region free (warner bros). However some genius has decided to place the episodes in broadcast order which means any for of storyline is all over the place, not just across the discs but the volumes as well!