Shooting the dog. Getting some roosters. Posting "No Trespassing" signs.
Come on. Who cares where they are from, or what they expect their neighbors to act like. I really don't care if they object to what you are legally allowed to do. (Loved the post about the neighbor objecting to how the garden looked!)
If your neighbor threatened you, CALL THE POLICE/SHERIFF!!!
You'll be suprised what a visit from the local law enforcement will do to change someone's attitude. Especially if you are in the right.
After reading this entire post I have to agree that the best action is to document everything. Write down dates, times, etc. Print out the local ordinance allowing livestock. You get the point.
Of course, if this doesn't work, shoot the d a m n dog.
Mark