Question: What if your neighbors found out that you hacked their wifi? (I hope not.) Question 2: Will my neighbors be able to trace back the URLs that I login, like FB, gmail, blogger, etc?
Laws vary from country to country. You should not hack your neighbour, bad neighbour. They could have a talk with you, you may end up dead or it might just be frowned upon. Remember, the neighbour might have shared folders that may contain sensitive information, just not for accessing free wifi so to speak That is normally the dangers of logging into public wifi or no password protect wifi. I would not use internet banking or check my emails that is for sure. They could be using applications such as wireshark, eavesdrop or firesheep to listen to traffic on the network.
If they capture the data and look in wireshark or commview yes they will see your url's login data will be encrypted. They will be able to see your computer on the network also ie: network shares printer share ect unless you turn off Function Discovery Resource Publication on windows or Bonjour on mac.
