Avi: This is documented in the help:
10.1 Help: Creating a metadata template
and (a bit more advanced):
10.1 Help: Editing metadata for many ArcGIS items
Hope this helps you out!
Update: I have found that batch does not work very well with model tools (many of the metadata tools are this type)... I have had better luck in 10.x using model builder and iterators instead of the batch functionality to process multiple files.
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