If it was me I would probably choose the closest school, so that I could visit him often - I have to say 2hrs is still not that far, when I went to university it would take me 1.5hr just to get there everyday
But, of course you do have to pick the school that you think has the best program for your future.
You say your neighbours have other dogs, do they ever have playdates with your little guy? maybe if there is one of your neighbours that you really get along with they could take him for playdates/walks once in a while?
Marko - I think the Skype idea is great!