He's got a neighbor who he wants to keep off his network. Hiding and changing the SSID is probably the easiest way to do this
No, the easiest way is enabling WPA with a decent passphrase. It solves
all of the OP's issues in one simple step.
I guarantee you, this will prevent the majority of people from finding his network.
The aim is not stopping people finding the network, the aim is stopping people accessing it. Hiding the network does not solve the problem, WPA does.
My point is that WPA is the lock on the door; setting obscure SSID, stopping its broadcast and MAC filtering is like barring the door with a coffee table - no added security, but still some unnecessary work added every time you want to walk through.
I simply offered four different things the OP can do to created a layered approach to wireless security.
Of which, three layers add
nothing to the network security, but create problems for him and the others (example: your home WLAN suddenly slows down. How long will it take you to figure out that your neighbour enabled his WLAN on the same channel if his SSID A) is B) is not broadcasted?).
I also pointed out that it's in no way a totally secure network, since there are people capable of defeating each layer. However, this approach will provide a good system of defenses that will protect the OP from the majority of people who may want to try to access his network, including his neighbor.
Security of WPA relies on the security of its passphrase. If the passphrase resists dictionary attack (which good passwords do), the only way to crack it becomes brute force, which takes years for passwords of sensible length (20+ characters in case of WPA). This will stop not the majority, but all unauthorised access to the network, including the OP's neighbour.