You can file a civil suit for encroachment and trespass. It's best not to let too much time go by with the present situation, because your...

The guy next door to me has a camera pointed in my back yard and kids rooms can he do that it is not pointed at his yard at all

It is legal for him to have a security camera, but could be an invasion of privacy if it is pointed at your kids' rooms. I would suggest sending...