Wow, that sounds pretty extreme. I'm surprised you didn't recognize your neighbor's cat once it was in the trap.
This happened to my friend and while her cat was at the pound it got very sick and in lots of pain and all her other cats (5) got very sick, cost her over $1,200 to cure the cats.
I understand the situation from both sides and hope he doesn't keep the sign up very long. As far as the cameras,
consider it extra security. He'll be able to see if someone is snooping around your house.
Good Luck :thumbup: