Sleeping a night with the windows open letting the night air in the room. The Terry Corollary implies that if you Sleep like a Swede and your name is Terry, then you also sleep in the nude.
"Last night was such a beautiful night I opened the windows and was Sleeping like a Swede."
"Too bad Terry wasn't joining you"
When two people make out and then afterwards one person (commonly referred to as the Swede) gets his face set on fire by the other (known as the Saudi). Then, while the "Swede" is still on fire, the couple continue to make out. Finally, the "Swede" urinates on the face of the "Saudi".
Whoa, I was totally Saudi-ing Victor last night and he was really into Swede-ing with me. It was a great Saudi-Swede Connection! He's in the hospital right now if you want to stop by.