If he "hacked" it then that's different, this one is just open.
Highly doubt they'd find out, if they did then I doubt they'd find you. :P
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Put it this way, if the neighbours where clever enough to find out who was on their network, then they'd of been clever enough to of secured their network.
Just dont browse shared files... Computer Misuse Act.
Urrgh, I hate it when people say "It's their own fault for leaving it unsecured." People don't feel the need to, they think people will be decent enough not to use someone else's connection which they don't contribute to or have asked permission for. It's illegal because you're using something for free, which others have paid for.
They can gain access to your info though.
To be fair I use my iPod Touch waiting for the bus lool, theres always like 5 unsecured networks around the place I catch my bus, silly old people!