dog going crazy because of a dog in heat.... but hes?

It can take up to a full year for all of he hormones to leave his system so since he's still got some in him that is why he's wanting to get at her.

When dogs are allowed to sexually mature - before being neutered, this is more likely to occur, than if they had gotten the snip at 6 months. Speak to your neighbor about whether he is likely to spay his girl & as the last poster suggested, please ask them to NOT let her potty on your side of the street.

Increasing his aerobic exercise elsewhere (like at a dog park, at a doogie play date, or in doogie day care) will help make him more tired & less fretful when at home. Boarding your boy for 1-2 weeks or putting him at a friend's or family member's home, is another option, besides putting UP with it. OR you can get some ACE (tranquilizer) from the vet to pretty much "knock him out" during the worst of it. Welcome to the world of male dog ownership.

You took his balls away, that didn't completely remove the instinct to do what males do. He had his hormones long enough to fully develop those instincts, and even with them gone, he'll still feel the need to mate.

The urge will slowly fade as the last of those hormones works out of his body.

You could politely ask the owner of the other dog if they intend on spaying her, or ask them to avoid letting her mark near your house when she's in heat.

Because, your dog was neutered. He didn't have a lobotomy. He knows what a female in heat means, he still gets the urge to procreate.

BTW, a neutered dog can still have sex and tie with a females that is ready. It's just safe sex. I personally know a rescued smooth mini dachshund, that had sex with the females that he lived with, when they were in heat.