This situation with your SIL should be handled exactly like you and one of your dude-friend's wives.
You don't think railing your best friend's wife would be cool, right?
Of course, as CuriousBear points out wisely, the closeness and trust of those kinds of relationships allow for some fun flirtation. I've smacked my best friend's wife on the ass before. That didn't mean I am going to be a homewrecker. I'm not saying there aren't some outlier behaviors possible, maybe even something out of a lurid novel if that's what you are all after.
Cheating, backstabbing and lying, though, are NOT positive, healthy things to be doing.
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"The question isn't who is going to let me, it's who is going to stop me." (Ayn Rand)
"The truth is that our finest moments are most likely to occur when we are feeling deeply uncomfortable, unhappy, or unfulfilled. For it is only in such moments, propelled by our discomfort, that we are likely to step out of our ruts and start searching for different ways or truer answers." (M. Scott Peck)
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