It is not possible to pixelate/black out the recordings. You can only mark certain camera areas in which the detected movement does not trigger a recording. As described by "titz", you probably have to work with an aperture if you can't choose a location that doesn't include your neighbour. PS: Perhaps the neighbour will be happy if his driveway is also monitored. Access to the camera can be shared with several users :-)
I don't think so, but you can narrow the viewing distance of the camera with a self-cut small filter made of plastic or cardboard (depending on the weather conditions). Greetings Peter