CTE within a CTE

You can’t nest CTEs like that in SQL Server but you can use multiple CTEs the following way:

;with test as 
(
    select 
        SRnum, 
        gamenumber, 
        StartOfDistribution, 
        ApplicationNumber   
    from #main
    where startofdistribution = '2011-06-14 00:00:00.000'
    and SRnum = '313'
    --order by SRnum, gamenumber, StartOfDistribution, ApplicationNumber
),
 outertest as
 (
    select
        ApplicationNumber
        ,count(*) as RetailerAppearance
    from test
    group by ApplicationNumber
    having count(*) = 4
) 
select count(*) 
from outertest