I had huge problems such as you describe. I was using a Linksys WRT54G router. If you are using this router, that could explain it. Your neighbor's router might be a different make and model. This explains why you can use his network with success. The laggy behavior is probably due to distance (signal strength) or his downloading torrents (or streaming video) that you are unaware of. Consider your router as the source of your problem. My router works fine once I flashed it with aftermarket (non-linksys) firmware. Regards M5