Start by filing a police report. Your neighbor was threatening you and your property. Next invest in some padlocks. This turkey sounds like the type to set your birds loose so his dogs can "get some exercise". Lastly, DOCUMENT, DOCUMENT, DOCUMENT. Every encounter you have with him note it in a journal- times, dates, what was said, your impressions.
I had a crazy/scary neighbor years ago who ended up going to jail, but not before he beat the stuffing out of his wife and kid until they both ended up hospitalized; shot all the kid's pets out in their field and when they tried to escape to our property, he chased them onto our land and shot them; set their house on fire; and tried to hold his wife hostage.
Please be careful. Maybe you guys just got off on the wrong foot, but it pays to be cautious when dealing with the unknown.