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[CreziB]

www.teamxlink.com

or

www.xbconnect.com

Personally I'd say go with Kai if you're wanting to play your neighbor as it is very similar to MSN messanger or AOL instant messenger.  Nice and easy, but xbconnect isn't a braniac program either.  I just vote kai for playing with friends/private games and such.

Or, buy a HUUUGE cat5 ethernet cable and run it from your xbox to his xbox. j/k