How can i keep my dog from attacking neighbors?

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My 1 and a half year old Auzi Shepard keeps running after our neighbor who lives in a small studio connected to the back of my house. My old roommate used to have all kinds of drug dealing strangers around till she (finally!) moved out so now my dog is spooked and feels threatened with people coming to my home. This neighbor has complained to myself and our land lord about my dogs 'attacks' and even called the cops on me once for being loud when it was just me home but for some reason never did when my old roommate threw wild parties in the middle of the week. Is there anyway to work with my dog to calm down and be able to be left in the backyard without having to worry about her getting to the picky neighbor!? i have gotten muzzles been keeping her indoors but she still gets out even just to run around the huge yards we moved here for in the first place *sigh* Auzis are know for being protective and spazzy is there any hope? its impossible to move right now and would break my heart to have to get rid of my best friend help please!