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I agree with Frankie that a good next step would be to try some non-lethal methods.

Pepper spray: http://www.sabrered.com/servlet/the-SAB ... Categories" onclick="window.open(this.href);return false;
Just make sure you're upwind.

Tasers are generally not a good idea on dogs, because they can be deadly and they require contact/closer proximity.
A face full of pepper spray should do the trick, but I'd have a shotgun handy just in case.

Also.... you should consider that the repercussions of shooting the dogs will likely include some sort of retaliation/intimidation from your neighbors. Sounds like they are not very honest/upstanding people. Plan accordingly.

Good luck with your problem. Sorry you have such terrible neighbors. Those dogs deserve better.