Dog obsessed with neighbor dog

[RocketGurl72]

I am needing some advise. Our dog is obsessed with our neighbours dog. Their dog comes outside in their yard (we're all fenced) and barks at everything. If my dog goes out at the same time it starts running back and forth along the fence line freaking out. She has ripped all our lawn along the fence line. She can barely see the dog through the fence but knows its there because it barks. I can't get her attention at all when she is in this mode and she has almost knocked me over whilst I've tried to stop her.

The neighbour uses a shaker can to get their dog to stop barking. This works, but it doesn't stop ours from running back and forth along the fence line of course. They have started turning on their outside light I think to let us know that their dog is out but I don't always notice and this doesn't help in the daylight.

Our dogs have met, they have played together just fine. Their dog is 8 yrs old while ours is 2 years old.

In the event it matters, our dog is said to be party border collie and part sheperd (a rescue) so we aren't 100% certain on this.