This sacred weapon provides spell resistance of 5 + the paladin’s level to the wielder and anyone adjacent to her.
Note that it doesn't say any allies adjacent to her, meaning if the paladin is using a Holy Avenger and is in melee with an enemy the enemy now has SR equal to the paladins.
Is this correct?
Don't forget that SR prevents friendly spells, too. If you've got SR, magical heal spells still have to roll caster level vs SR.
Yeah - SR isn't necessarily always a good thing to have. Usually I consider it a handicapp.
It's worth noting that the SR is pretty weak. SR 5+level means that at any given level, an appropriately build (like level) caster need only roll a 5 or higher to surpass the SR (less if she took spell penetration). There's a 20% chance of failure, which means a paladin's allies should probably invest in those SR feats.
Interesting points, I didn't consider the rehashing of the anti-magic zone effect and that makes perfect sense. Thanks for the responses all.
But spell resistence can be voluntarily lowered. Granted, it is a standard action and one not likily in battle, but still the option is there all the same.