An update,
My husband and I talked to everyone legally involved and this is what we learn:

My SIL has called the police chief and requested the I phone with the evidence on it back. She also told him that
"if anything happened to my daughter, I will make sure it will not happen again!"
!!!!!!!!!!!!!!!!!!!!!!!
IF the D.A. has already gotten a search warrent for the phone, then they do not have to give it back. If they have not gotten an order, it will go back to her, as her lawyer has probably advised her to get it back to protect her husband.
Child protection services told us that the investigation is still open but they have ruled the case, "interesting and inconclusive." We gave them more information regarding what my SIL has told us and they took this down. They said that they are "blocked," by what they can do legally without enough evidence that this little girl was molested!
I asked them if her father saying he did download father/daughter porn, and my SIL admitting he did sleep with the little girl naked, along with everything elsew was not enough, WHAT WAS??
And so my husband and I called the State CPS office and told them about the problem, basically going over thier heads and also wrote to the office of the Senator for Virginia to ask him why the CPS office had thier, "hands tied," in this matter and explained the whole situation.

We are running out of things to do. I know that the situation will blow up again as the Chief tells us but waiting for that while he is in the home is like asking him to hurt my niece! It's absurd!

So this is where we are. We are waiting this out but know he will get the whole nine yards for the DUI he collected. They will not move on this problem until they get "enough," evidence.

If the I-Phone has a search order on it, it may save the day. If it does not, both of them have started to hide behind a lawyer and my sister in law is saying she will protect her daughter herself. Also, her grown daughter has been given a ticket to visit her mother on the promise of a car. I'm not sure what that will cause...

dancer9