[ZenGum]

I guess the best solution is for the neighbours to get another dog. They're social animals, it wants someone to play with.
I was also thinking along the lines of uniting Ali's dogs with the neighbour's dog, thus fixing its loneliness. If you aren't willing to have their dog at your place ... can your dogs go over their for visits? If they come to like each other, could you make a doggy-door in the fence?
Failing that, speak to the other neighbours behind and around the noisy dog's house. If it's annoying you, it's going to be annoying others. At least you'll feel better knowing you're not alone.
Give it a bit of time for the neighbours to sort out. Calling in the council/police ruins relationships. But as a last resort, I guess you should.