It's amazing how much control others have over OUR property, I can see if it's on a public street, but not in your own back yard.
I try to follow a few simple rules when working on my own cars in my driveway,
1. Not everyone gets up or goes to bed at the same time, so when working on my car I don't start to early and I don't work on them to late, especially with air tools, or loud exhaust etc.
2. At the end of the day after working on my car, if for some reason I'm not done and it's out in plain view, I always make it look like it's running, that means all four tires on the ground, hood on etc.
I've never had any problems with neighbors, but I've seen other neighbors have major problems with city officials.
Be careful it's amazing how much stuff the city can get you for if they really want too.